Conveyancing fees for moving

sarahrey1

Can anyone advise on this? We have been given a quotation from our conveyancers which includes a £125 redemption fee. When I queried about this I was told it was a charge for paying off our mortgage however I was under the assumption as we had added an extra loan to buy another house to our existing mortgage and are therefore transferring it to another property, we would not have to pay a redemption fee?

Madjock

It's not a penalty fee, it's an admin fee. You need to take it up with the lender.

danm

have a good read of the small print.

mine had the same fee on the actual breakdown of figures, but said elsewhere that if you were porting the existing loan to another property, if was to be discounted.

my sols obviously didn't read it as the figure i got from him included the fee still.

ZoeUK

Hi,

I'm a legal assistant in a conveyancing department and it will most probably be an early redemption fee that will be removed if you are simply porting the mortgage. It is unfair to assume that if you're charged it is because your solicitor hasn't read the paperwork. Remember that when redeeming your current mortgage your solicitor has a duty to send the exact amount shown on the redemption statement they have been sent by your lender. Unfortunately most lenders still put this on and it is your responsibility to ensure they send your solicitor the correct figure. It'll make the process alot smoother.

Good Luck

Bernard_Coleslaw

sarahrey1 wrote:

Can anyone advise on this? We have been given a quotation from our conveyancers which includes a £125 redemption fee. When I queried about this I was told it was a charge for paying off our mortgage however I was under the assumption as we had added an extra loan to buy another house to our existing mortgage and are therefore transferring it to another property, we would not have to pay a redemption fee?

The belief that you're transferrring your mortgage when you move house is a common misconception. You're not, even if you're staying with the same lender, and over the original term. The mortgage is 'per property' rather than 'per person'.

When you move house, the old mortgage is paid off and a brand new one starts up, secured on your new house. So if there are fees to be paid in redeeming your old mortgage, this is what you're being charged. It's a shame your conveyancer didn't explain that, as it is a common belief that people have.