Mortgage redemption early repayment charge - Solicitors fault

topaz345

I am completing on selling my property today and my solicitor emailed me yesterday to confirm that I was 'happy' with the redemption figure from my mortgage company. I noticed that the final figure included an early repayment charge as the settlement was to be within 1 month (in this case 1 day). I spoke with my solicitor and he confirmed that the final figure did include an early repayment fee as he said he was not aware that there was one so hadn't bothered to request the settlement earlier! This figure amounts to £803.55 so not a small sum by any means. I pointed out that I had sent him a copy of redemption figure very early on and highlighted the fact that there was a redemption to pay if notice was not provided. He then asked what I wanted to do given that it literally was the 11th hour and he was just about to exchange! Prior to this I was under the impression that exchange had already taken place (this sale had been going on since the end of January)! The solicitor has been incompetent from the beginning and I have had to chase him the whole time. The purchasers were first time buyers with their mortgage agreed and there was no chain involved my side, so it has taken a ridiculous amount of time for the circumstances.

I am appalled that I will now be more than £800 out of pocket due to a mistake that the solicitor made, can someone please offer advice?
Many thanks in advance.
Michelle

holly_hobby

Im not sure what you are saying, but I think i read it as ..

Because you will be redeeming your mge within 1 month of requesting a final redemption statment, there is a £803.55 fee incurred ?

But that if more than 1 month had elapsed between the 2 , this charge would not apply ?

Is that the gist ?

Holly x

kingstreet

Is this an early repayment penalty, or are you having to pay a month's interest because notice was not given?

topaz345

"The early repayment charge will apply if 1 months notice of intention to redeem has not been received by us. Notice of intention to redeem may be given by the customer(s) or their solicitors only. Your request for this redemption figure does not constitute such notice, for which a separate specific advice will be required"

The solicitor requested the figure yesterday and completion is today! He claims to have never having given notice on a mortgage redemption before so was not aware. Even though I sent him a copy redemption figure early on and highlighted the above to him.

holly_hobby

topaz345 wrote: »

"The early repayment charge will apply if 1 months notice of intention to redeem has not been received by us. Notice of intention to redeem may be given by the customer(s) or their solicitors only. Your request for this redemption figure does not constitute such notice, for which a separate specific advice will be required"

It appears that you were alerady aware of this notice requriement, and that it could be given by the mortgagor or conveyencer.

My question is (and I know it will put the cat amongst the pidgeons) is why you didn't advise the lender early on and/ or verify the solicitor had notified them(given the penalty charge otherwise) ?

H x

kingstreet

AFAIK such notice can only be given by the account holder and could have been done back when the mortgage application was submitted, but TBH it's been so long since I came across such as case, I may be remembering it wrong.

Question - should the solicitor be the one giving the notice?

topaz345

Thanks Holly for your reply.
I did tell the solicitor early on that the mortgage company needed 1 months notice or there is a penalty charge. He now seems a bit hazy in his recollection!

Thanks KingsStreet for your reply. I'm not sure what you mean by mortgage application - I was not applying but redeeming. And notice can be given by the customer OR the solicitor.

TrickyDicky101

topaz345 wrote: »

And notice can be given by the customer OR the solicitor.

So did you specifically ask the solicitor to provide the notice (please note this is different from 'make solicitor aware' notice had to be given)?

kingstreet

topaz345 wrote: »

Thanks KingsStreet for your reply. I'm not sure what you mean by mortgage application - I was not applying but redeeming. And notice can be given by the customer OR the solicitor.

Sorry, I meant making a new application to a new lender if you're moving or remortgaging.

I 'spose the question then is did you formally instruct the solicitor to give notice?

topaz345

When I sent him a copy of the mortgage redemption statement early on in the sale I highlighted that notice had to be given or there is a penalty. I'm not sure if this constitutes as 'an instruction' but I certainly highlighted the fact that there was a penalty charge if notice was not given.

kingstreet

I fear this is going to end up with a deadlock over what was said and what was meant.

No alternative but a complaint to the solicitor firm, IMHO.