Building society keeping charge when mortgage paid off

Money_Bunny

I'm just about to pay off my small mortgage (no congratulations this isn't down to any effort on my part - I was just lucky enough to come into some money)

Anyway, I sought a redemption figure from the Coventry. They sent it together with a form to fill in if I want to avail myself of their free scheme whereby they keep the charge on the property. The reason they give as to why I might want to do this is that if I ever want a further mortgage then I won't need a solicitor to draw up the charge document.

I'm very dubious about the benefits. Presumably, this wouldn't make it any easier for me to get a further mortgage - they'd still want to assess me against affordability criteria etc. Further, would there be an issue of being tied to the Coventry if I want a further mortgage. Generally, having paid the mortgage off, I just don't like the idea of there still being a charge on the property.


So, is allowing Coventry to keep the charge a good idea.

opinions4u

Get it cleared.

Unless you think borrowing from Coventry is likely in the future.

Goldiegirl

In the past, when Title Deeds were very important legal documents, this sort of scheme was useful as a cheap way to store your Title Deeds securely, as the Deeds would remain with the lender.

However, in this electronic age, when everything is stored on the Land Registry computer, the Deeds are no longer important to prove your ownership of the property.

Therefore, if you know you will not want to borrow any further money from the Coventry, there is no real benefit to you if they keep the charge on the property.

Money_Bunny

Thanks both. That's nice and clear. The Coventry don't get to keep the charge.

So the property's mine all mine, hee hee.:j

AnAlternativeView

It would make it easier to get a new mortgage at much reduced costs - i.e. it could mean a simple revaluation Vs full valuation / no legal fees as first charge is already on the property (£500 to do these two again?). If, and obviously you'll know, you may want a mortgage in the future, this would be a big chunk of fees.

- It is not necessarily related to the point made above retaining the deeds. As the poster points out, nowadays everything is electronic and deeds have no value (except in unregistered properties....).