Can solicitors insist they pay off my mortgage ??

OneDayCloserr

My solicitors are slow and vague and I'm dealing with a junior who has given me bad info and I'm doing this whole big thing alone and it's a bit darned scary!!! So any help/advice is greatly appreciated.

I stated I will be paying off my own mortgage and so I didn't need to pay them hundreds of pounds to do so. I spoke with my bank and know the process and it is very straight forward and will cost me less than £50.

I was told by the junior that was fine. But later got an email stating I had to prove I'd paid off my mortgage before the solicitors would agree to exchange contracts.

I countered with incredulity as I was only doing what they will be doing, and of course I was going to redeem my mortgage only after I received funds from the sale of my property - as is the norm!

I advised I would get a letter from the bank confirming their process and add to that my guarantee that I will be paying off my mortgage upon completion. I had no reply to my email from the solicitors, even after chasing them and asking if my plan was ok. So I progressed on the assumption no news was good news and sent them the promised info a few days ago.

But alas today I received an apology from the junior saying she had steered me wrong and that:

You are not able to pay your own mortgage if it is to be paid from the completion funds. The buyers solicitor will require our undertakings to deal with this and to have the Charged removed from Land Registry. We are only able to give undertakings for that which is in our own control and therefore we will have to deal with the redemption on your behalf.

Im not really even sure what this means but I get the premise. Is this true? Must I pay hundreds of pounds to them for something that is so easy for me to do??!

Apologies if I've missed any info required to steer me, please ask away. I'm just trying to decide whether to stick to my guns or just give in and hand over my purse

Either way I may ask that the (non junior) solicitor calls me to explain this.

Thanks

PasturesNew

You're not paying hundreds of pounds for them to do that ... it's all the other stuff they do. Settling the mortgage is a part of that - but an essential part of it.

They have to know/prove that the mortgage has been settled as it is linked to the property. The buyer's solicitor will want to ensure that the mortgage was paid off before they've completed their part of their job.

I think you might have the wrong end of the stick over how much they're charging you for which parts of the service they are providing - and what's involved in that and what could possibly go wrong.

gettingtheresometime

If the only way you can pay off your mortgage is by selling your house, then what you're basically saying is that you want the buyer's lender to give you thousands of pounds so that you can do the evil deed.


Why would they trust you to do that?


Do they charge hundreds of pounds to pay off a mortgage or is this one service they provide, amongst many, in the buying/selling process for hundreds of pounds

silvercar

You are not able to pay your own mortgage if it is to be paid from the completion funds. The buyers solicitor will require our undertakings to deal with this and to have the Charged removed from Land Registry. We are only able to give undertakings for that which is in our own control and therefore we will have to deal with the redemption on your behalf.

Totally true.

Guest101

OneDayCloserr wrote: »

My solicitors are slow and vague and I'm dealing with a junior who has given me bad info and I'm doing this whole big thing alone and it's a bit darned scary!!! So any help/advice is greatly appreciated.

I stated I will be paying off my own mortgage and so I didn't need to pay them hundreds of pounds to do so. I spoke with my bank and know the process and it is very straight forward and will cost me less than £50.

I was told by the junior that was fine. But later got an email stating I had to prove I'd paid off my mortgage before the solicitors would agree to exchange contracts.

I countered with incredulity as I was only doing what they will be doing, and of course I was going to redeem my mortgage only after I received funds from the sale of my property - as is the norm!

I advised I would get a letter from the bank confirming their process and add to that my guarantee that I will be paying off my mortgage upon completion. I had no reply to my email from the solicitors, even after chasing them and asking if my plan was ok. So I progressed on the assumption no news was good news and sent them the promised info a few days ago.

But alas today I received an apology from the junior saying she had steered me wrong and that:

You are not able to pay your own mortgage if it is to be paid from the completion funds. The buyers solicitor will require our undertakings to deal with this and to have the Charged removed from Land Registry. We are only able to give undertakings for that which is in our own control and therefore we will have to deal with the redemption on your behalf.

Im not really even sure what this means but I get the premise. Is this true? Must I pay hundreds of pounds to them for something that is so easy for me to do??!

Apologies if I've missed any info required to steer me, please ask away. I'm just trying to decide whether to stick to my guns or just give in and hand over my purse

Either way I may ask that the (non junior) solicitor calls me to explain this.

Thanks

the short answer is yes, the money from the sale is not yours, you should never receive it

OneDayCloserr

Hi guys,

Thanks for the quick replies.

I have a detailed list of all the charges for everything. Within this list is a mortgage redemption fee, a bank transfer fee, and a bank agency fee (which was explained as 'dealing with the bank on my behalf to pay off my mortgage') fee. So if the overall many hundreds of pounds this is costing me, the mortgage redemption part is costing me the hundreds stated above.

I don't uunderstand why I would be wanting anyone to lend me thousands - sorry if I'm being dim....

I believe I want to do exactly what the solicitors will do. Once the buyer buys my house and sends the money part of that money will be forwarded to the bank to pay off my mortgage - regardless of if that's me or the solicitor?

If I'm wrong I'm happy to be corrected as this is the bit that is sticking in my craw!

I will pay via CHAPS the day we complete.

Thanks

DumbMuscle

Also, you're probably going to rack up just as much solicitor time arguing about it as actually getting them to do the thing

martinsurrey

OneDayCloserr wrote: »

Apologies if I've missed any info required to steer me, please ask away. I'm just trying to decide whether to stick to my guns or just give in and hand over my purse

In your world.

The buyers solicitors give your solicitors the cash for the sale, they pass it on to you, you then send it to the bank.

Whats to stop you from NOT paying the mortgage off and dancing off into the sunset? the Buyer will then not own the house as your mortgage company wont release their charge.

In the REAL world

Your solicitor gives an undertaking (READ PROMISE) to the buyers solicitor that the mortgage will be redeemed and the charge removed. Solicitors are insured and regulated, if yorr solicitor failed in their undertaking the buyers could take legal action and claim on your solicitors insurance, meaning there is little risk for the buyer.

you are not insured or regulated to deal with this

Guest101

OneDayCloserr wrote: »

Hi guys,

Thanks for the quick replies.

I have a detailed list of all the charges for everything. Within this list is a mortgage redemption fee, a bank transfer fee, and a bank agency fee (which was explained as 'dealing with the bank on my behalf to pay off my mortgage') fee. So if the overall many hundreds of pounds this is costing me, the mortgage redemption part is costing me the hundreds stated above.

I don't uunderstand why I would be wanting anyone to lend me thousands - sorry if I'm being dim....

I believe I want to do exactly what the solicitors will do. Once the buyer buys my house and sends the money part of that money will be forwarded to the bank to pay off my mortgage - regardless of if that's me or the solicitor?

If I'm wrong I'm happy to be corrected as this is the bit that is sticking in my craw!

I will pay via CHAPS the day we complete.

Thanks

Lets put this another way, you cannot sell your property, unless your lender agrees, and their terms are that a nominated solicitor will ensure payment.


You have NO choice in the matter. It's not your money

HB58

The mortgage redemption fee is levied by the lender for paying early (and depriving them of x years of interest). It will be the same whoever actually hands over the dosh.

OneDayCloserr

I'm sorry I really don't understand what you're saying. Why would the money from the sale of my house not be mine????