removing charge on deeds - mortgage repayment

mikeeread

Hi

We're in the happy position of having recently paid off our mortgage with the Halifax.

Received a letter today to that affect however the following has taken some of the shine off

"Our interest now needs to be discharged by the Scottish Land Registry. Please engage a solicitor to act on your behalf if you require the charge to be removed".

Initially I was confused by the terminology but I now understand that when I took out the mortgage Halifax put a note on the deeds (interest) staking their claim. Having spoken to the Halifax it seems that they used to remove this in Scotland but now don't (they still do for the rest of the UK I think).

I've raised a complaint with the halifax on two grounds, basically they put the charge on they should take it off, and if their policy changed did they ever tell me.

I've also spoken to the land registry in Scotland who bascially confirm I need to get a solicitor to do it as they know how to write the letter and will get the correct documentation and signature from Halifax.

So I guess I'm just after advice as to whether I just need to stump up the few hundred quid (£60 land registry charge plus ?? for the solicitor) or whether I'm likely to get any joy from Halifax or can I do it myself.

Thanks
Mike

Thrugelmir

The Halifax charge a mortgage redemption fee as standard in England and Wales. So there is a cost involved.


Suggest you obtain 3 quotes before choosing a solicitor to perform the task for you.

kingstreet

This is an interesting question.

I've looked back on a few Halifax mortgage offers and KFIs on cases I've done in the last five or six years.

Early ones show £50 "Deeds Dispatch Fee" payable on repayment "whenever the deeds are dispatched."

More recent ones quote the current "Mortgage Account Fee" of £245 payable over the whole term of the mortgage;-

The fee is payable on completion and is not refundable. The fee will be added to the loan. This fee is to cover the setting up, routine maintenance and closing down of the mortgage account

Neither mentions the specific removal of a charge. Note these relate to English property transactions.

HappyMJ

Personally, I wouldn't bother you've paid it off. The Halifax are never going to repossess it so just leave it with their name on it. Cost: Free.

Nobody is ever going to know that the bank still has an entry in the land registry against your house unless they do a property search and how often does that happen. Never...

kingstreet

HappyMJ wrote: »

Personally, I wouldn't bother you've paid it off. The Halifax are never going to repossess it so just leave it with their name on it. Cost: Free.

Nobody is ever going to know that the bank still has an entry in the land registry against your house unless they do a property search and how often does that happen. Never...

On the face of it, I agree with you. However, these things have a nasty knack of biting you on the bum when you least need it. We've had threads recently where years-old charges have re-surfaced at sale time and these have caused delays despite the loans/mortgages being long-since cleared.

Thrugelmir

HappyMJ wrote: »

Personally, I wouldn't bother you've paid it off. The Halifax are never going to repossess it so just leave it with their name on it. Cost: Free.

Nobody is ever going to know that the bank still has an entry in the land registry against your house unless they do a property search and how often does that happen. Never...

Until you come to sell the property.

mikeeread

Thanks for the replies.

The person I spoke to at Land Registry in Scotland said that leaving the charge on could also effect a credit check i.e. it would look like we still had a mortgage.

We paid a £50 admin fee and £50 deeds dispatch fee to Halifax. Apparently the physical deeds should arrive within 28 days.

I'm minded to sort it now, just object to paying a solicitor. I have a letter from Halifax saying the mortgage is repaid so ...

Maybe the cost won't be too silly.

Cheers
Mike