Removing charge from deeds

[Deleted User]

I had a large business loan several years ago which was secured against my home by a second charge. Unfortunately I had a serious accident which resulted in my having to close down my business and of course, the bank called in the personal guarantee which I have personally been paying for the last two years.

I am now in a position to clear the outstanding loan and plan to contact the bank for a final settlement figure. However, I am planning to sell my house in the near future and am concerned about stories I have heard/read about charges not being removed and then causing problems at the point of sale.

Obviously the bank wont remove the charge until they have the money I understand this but I was wondering about the best way to ensure that is removed as part of the settlement and not just forgotten about once they have the money in their hands. Would it be reasonable do you think, to ask the bank to put in writing their promise to ensure the charge is removed before I agree to hand over the payment?

Thanks for any advice

G_M

You simply write & ask for the final settlement figure required to pay off the loan and remove the charge.

Then you check that the charge has been removed.

ValHaller

If you clear your debt in full, the bank have a duty to remove the charge. It is not a favour which you should grovel for, it is a right you should demand if hey do not do it promptly

JencParker

I am planning to sell my house in the near future and am concerned about stories
I have heard/read about charges not being removed and then causing problems at
the point of sale.

Can I ask what problems? I have a second charge on my property for Legal Aid that was attached when I got divorced. I assumed this would be paid off when the house was eventually sold. I am thinking of selling in the next year or so. Will this present problems?

G_M

JencParker wrote: »

Can I ask what problems? I have a second charge on my property for Legal Aid that was attached when I got divorced. I assumed this would be paid off when the house was eventually sold. I am thinking of selling in the next year or so. Will this present problems?

Providing the sale, or your savings, are sufficient to pay off the debt, no.

JencParker

Thanks - yes my mortgage is nearly paid off, and there is plenty of equity. I assumed the bank would pay it off directly before sending the balance to myself.

ValHaller

JencParker wrote: »

Thanks - yes my mortgage is nearly paid off, and there is plenty of equity. I assumed the bank would pay it off directly before sending the balance to myself.

No, your selling solicitor will send the balance to you after clearing the mortgage and the legal aid charge.