Owe £1 on mortgage Building society have retained a charge on the property

broughsupn

Hi,

I have paid of my mortgage and the building society credited back £1 to my account so I would not have to hold the deeds.

They have written to say they will retain a charge on the property until the account is paid off.

What does this actually mean, and what are the implications.

Thanks

Nick

System

Basically means that the BS hold on to your deeds (i.e. you dont have to store and potentially lose them).

Also means if you have your account open, you have the chance to borrow money at a cheaper rate than commercial loans should you ever need it.

My dad paid off his mortgage 2 years ago and has left around £100 on the account interest free for these reasons.

(Not really sure how important it is re: holding hard copies of deeds as pretty sure land registry hold electronic copies anyway?)

In terms of the BS holding a charge, it basically means if you sell your house, the BS would get the first £1.

DUTR

payvpac wrote: »

Basically means that the BS hold on to your deeds (i.e. you dont have to store and potentially lose them).

Also means if you have your account open, you have the chance to borrow money at a cheaper rate than commercial loans should you ever need it.

My dad paid off his mortgage 2 years ago and has left around £100 on the account interest free for these reasons.

(Not really sure how important it is re: holding hard copies of deeds as pretty sure land registry hold electronic copies anyway?)

In terms of the BS holding a charge, it basically means if you sell your house, the BS would get the first £1.

That is correct, I had my deeds years ago, but still had the mortgage running, the mortgage is now cleared and I recieved a letter to say that there is no charge on the property now.

opinions4u

Free place to keep the deeds (not that they have much value these days).

Potentially quicker way to raise new secured funds from the same lender (but potentially slower if you wish to use another lender).

Potentially slower when you come to sell.

Me? I wouldn't bother with it these days. There was a time when it made sense. No more though.

xylophone

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/BuyingYourHome/DG_10026643
http://www.sharpestateagents.com/a-z/deeds.html property in England - might be of interest.
http://www.learnmoney.co.uk/mortgages/mort-09.html

http://www.home.co.uk/guides/mortgage_glossary.htm?chrge might be of interest.

Evilm

It means their interest is still registered on your property at the Land Registry. Amendments can't be made without proof of their approval (such as new mortgage/chargechange of ownership etc).

Its nothing serious.