Is transfer of security a standard conveyancing transaction?

djm1972

Hi,

Just quickie. My current mortgage is portable, so I can move it to another property (subject to survey and it being of equal or higher value).

I would be selling my property; so as I understand it; what would happen during conveyancing is that funds would be received from the person buying my property; and then rather than use these to clear my mortgage; the funds would go straight to the person I am buying from. The solicitor would then do something to transfer the property against which my mortgage is secured from my existing place to my new place.

Is this how it works, and would any old conveyancing solicitor be familiar with and able to magage this transaction?

Thanks!

danm

basically yes

Your current lender will lodge a discharge notice (think this is called an END notice) with the LR for your current property.

As part of the conveyancing process, you solicitor would have started the process by which your lender gets the benefit of security on the new property.

Richard_Webster

As a Conveyancing Solicitor, can I answer?

You have to distinguish between the security on the property (the mortgage) and the terms of the loan agreed between you and the lender.

As danm says, the existing security will have to be removed form the property you are selling and a new mortgage deed signed by you over the proeprty you are buying.

From our point of view the legal work is the same. There's the same amount of work to do if you are transferring say an Abbey mortgage to another house as there is if you are paying off a Halifax mortgage on your present house and taking one with the Nationwide on the house you are buying.

People think that the lender transfers the funds internally. With one or two exceptions (Virgin One comes to mind) this does not happen. Lenders send us a new lump of money for the loan on the purchase usually the day before completion and we have to send them back the money to pay off the old mortgage the day the sale completes! You may find this difficult to believe, but I assure you that's what happens in most cases, "porting" or not.

If you are "porting" the terms of a mortgage loan to a new property we have the extra trouble of getting the lender to confirm that the penalty shown on the redemption statement is NOT PAYABLE because "porting" is taking place - lenders don't always tell US that!