Properties with multiple lenders on LR.

lewishardwick

Hi there,

I've been looking at a couple of properties and purchased Title Registers from the Land Registry.

Some I've seen have an additional lender other than the mortgage lender.

Ideally when the property sells, the mortgage lender and any other interested party (Skye Loans Ltd for example) will have first dips on cash and anything left over goes to the vendor?

What if there's not enough to go round and Skye Loans are still out of pocket? Do they have to agree to the sale of the property, or will they have to chase the vendor for the outstanding debt via other means?

Thanks!

G_M

Either

1) the seller needs to pay off the loans and remove the Charges from the Title before Completion takes place and the buyer hands over the cash., or

2) the buyer and seller both use solicitors. The seller's solicitor gives the buyer's solicitor a 'solicitor's undertaking' that all the Charges will be removed once the cash has been handed over at Completion. Soliciors trust each other, and the seller's solicitor would only give this undertaking if he knew the seller had enough money to do this (either from the sale or from elsewhere), or

3) one of the lenders eg Sky, might agree to remove the Charge without their debt being paid off.