Homebuy Direct Equity Loan Repayment

Rickster1978

Howdy all

Has anyone paid back their equity loan yet? I'm looking for a bit of advice really. We have submitted a RICS valuation to metropolitan and this has been accepted. We have agreed a mortgage with natwest for part of the loan, and the rest will be repaid through our savings.

Now I would have thought it was all pretty straightforward now but I'm being advised to get a solicitor involved. I had hoped I wouldn't need one as it's just a case of Natwest paying Metropolitan the money and me also making the payment and then them removing the two second charges from the land registry record.... does this really need a solicitor??

Anyone else repaid the equity loan and did you need a solicitor?

charleyroo

i am just repaying mine now (as moving) and yes have used a solicitor. You need the sol to amend the deeds, deal with the lender/HA and then report back to LR.

If you think about it, it's not that dissimilar to remortgaging with a new lender. You need a sol then for quite similar activities.

It won't cost you that much.

kingstreet

Rickster1978 wrote: »

them removing the two second charges from the land registry record.... does this really need a solicitor??

Why are there two second charges?

NatWest won't send the money to HOP, that has to be done via a solicitor, which will have the second charge to the HCA removed from the LR record.

You'll send your contribution to the solicitor too.

Rickster1978

Thanks for the replies

There are 2 charges as one is Taylor Wimpey and the other is HOP.

Interestingly Natwest said they would happily pay the funds directly to Metropolitan homes. It's Metropolitan homes who are asking for the solicitors details.

I've asked for a couple of quotes from local solicitors to see if I can get a reasonable one. First quote was £899 which seemed a lot for very little work.

kingstreet

Ah, I understand. It's a split developer/Government equity loan.

NatWest would send the money direct? That's a surprise. Ask HOP if they will accept it directly then.

The problem is, I wouldn't trust HOP to release the charges over the property and you don't want to find they are still there in a couple of years if you want to sell/remortgage etc.

In the staircasing section of the HOP HBD guide I have, on page 4 it just says;-

"We will ask you to confirm how much you are looking to staircase and the details of the solicitor acting for you in this transaction."