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Help Needed Re Completion
Lisa_Atkinson
Posts: 14 Forumite
Hi All
Just a little clarification needed really.
We are selling our house for £129k (cash buyers), purchasing a new house for £108k with a 10% deposit leaving a mortgage from Halifax of £97,200. We have an existing mortgage of £88k on the house we are selling, which is currently on a fixed rate so we are transferring the rate to another Halifax mortgage just having an extra £9k.
At late notice we have been informed completion could be taking place on Monday, my solicitor said she will order the mortgage funds from Halifax and they should be here on time for Monday but cant guarantee it. Does anyone have any idea that Halifax will be able to have the funds ready for Monday, is it too short notice?
What is the actual process of how the money gets passed down / transferred etc.
Will the £129k sales proceeds be passed to my solicitor, £108k of which gets passed to our sellers solicitor for the new house, the extra £9k called for from Halifax, her fees deducted and the rest past back to me?
Or will the the £88k we owe on the mortgage for the house were selling be paid off from the £129k sales proceeds, 10% deposit paid to sellers solicitor from our sales proceeds, and the £97,200 new mortgage be called for from Halifax.
It just makes sense to me to pay for the new house of the of the sales proceeds as were just transferring a rate still with Halifax not using a new mortgage company. It seems daft to pay Halifax £88k to pay off an existing mortgage, to then ask them for £97,200 back??
Could someone just shed some light on how it all works as this is all new to me and im already completely baffled lol
Thanks
Just a little clarification needed really.
We are selling our house for £129k (cash buyers), purchasing a new house for £108k with a 10% deposit leaving a mortgage from Halifax of £97,200. We have an existing mortgage of £88k on the house we are selling, which is currently on a fixed rate so we are transferring the rate to another Halifax mortgage just having an extra £9k.
At late notice we have been informed completion could be taking place on Monday, my solicitor said she will order the mortgage funds from Halifax and they should be here on time for Monday but cant guarantee it. Does anyone have any idea that Halifax will be able to have the funds ready for Monday, is it too short notice?
What is the actual process of how the money gets passed down / transferred etc.
Will the £129k sales proceeds be passed to my solicitor, £108k of which gets passed to our sellers solicitor for the new house, the extra £9k called for from Halifax, her fees deducted and the rest past back to me?
Or will the the £88k we owe on the mortgage for the house were selling be paid off from the £129k sales proceeds, 10% deposit paid to sellers solicitor from our sales proceeds, and the £97,200 new mortgage be called for from Halifax.
It just makes sense to me to pay for the new house of the of the sales proceeds as were just transferring a rate still with Halifax not using a new mortgage company. It seems daft to pay Halifax £88k to pay off an existing mortgage, to then ask them for £97,200 back??
Could someone just shed some light on how it all works as this is all new to me and im already completely baffled lol
Thanks
0
Comments
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Your solicitors will get the £97,200 from the Halifax and the £129K from the buyers for the sale of your house. They will then pay £108K to the seller's solicitors to buy the new house and send £88K back to Halifax to pay off your old mortgage. Yes, they will do it that way - they won't just get £9,200 extra from Halifax. It may seem daft but that is what nearly every lender requires us to do.
Out of the money left over they will take their costs and disbursements such as Land Registry Fees and pass what is left back to you.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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