Equity charges

LucyH1986

My partner and I are currently buying - offer accepted, mortgage approved, conveyancing searches all done, literally been waiting to exchange and complete.

However, I am now being told that there we are waiting for equitable charges / redemption statements to be removed from the register.

Does anyone know what this means and how long it takes?

nomoneytoday

twice as long as doing half of them?

Thrugelmir

Your vendor owes someone money. This someone holds a charge over the property as security for the debt.

Suggest you enquire through the EA as to how long this is going to take to resolve. May not be an issue at all.

LucyH1986

Thanks Thrugelmir, its currently with the solicitors and they seem to be dragging their heels.

Could it stop the sale going through?

AnotherJoe

LucyH1986 wrote: »

Thanks Thrugelmir, its currently with the solicitors and they seem to be dragging their heels.

Could it stop the sale going through?

Of course. If it couldn't, there would be no point in having a charge over a property.

Thrugelmir

LucyH1986 wrote: »

Thanks Thrugelmir, its currently with the solicitors and they seem to be dragging their heels.

Could it stop the sale going through?

Solicitors deal purely with the legalities. The money owed either has to come from the sale of the property or elsewhere. This is the vendors problem.

Cakeguts

This can take a long time to sort out. The solicitors have to assess whether settling the extra charge will leave the seller in negative equity if so then the sale may not proceed because there won't be enough money to pay off the mortgage. Last time we bought a house it took 5 months from offer accepted to completion. There was a mortgage and 2 other charges on the property. The property was vacant and we didn't need a mortgage. The hold up was because of the charges.

AnotherJoe

Thrugelmir wrote: »

Solicitors deal purely with the legalities. The money owed either has to come from the sale of the property or elsewhere. This is the vendors problem.

..... which might become the OPs problem if it derails the sale.

G_M

it is common for a property to have a Charge registered ie a mortgage.

Normally, the seller's solicitor gives a "solicitor's undertaking" (promise) to the buyer's solicitor, that he will pay off the mortgage and get the Charge removed after Completion, using the money paid by the buyer.

For some reason, this does not seem to be being done here. It may be because

* the mortgage and /or debts are greater than the property sale price
* here are multiple debts (Charges)
* the Charge may not be related to a mortgage - it may be connected to a bankrupcy, court order, divorce or other matter

Depending what the Charges are, and how many, it may take a few days to sort out, or several months.

Or the sale may fall through.

LucyH1986

Thanks for your responses all much appreciated.

It has already been about two weeks so suspect the latter. I believe the vendors solicitor is waiting for redemption statements before he gives his undertaking.

Surely the vendor would not put his house on the market and accept an offer if he is unable to use the sale money to pay off what he owes?

Thrugelmir

LucyH1986 wrote: »

Surely the vendor would not put his house on the market and accept an offer if he is unable to use the sale money to pay off what he owes?

Without knowing the full facts one can only speculate.