Can solicitors insist they pay off my mortgage ??

OneDayCloserr

It's not the mortgage redemption fee - I don't have any charges for paying off my mortgage. (Thankfully!!

Guest101

OneDayCloserr wrote: »

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????

because the house is mortgaged?


You are not mortgaged, the house is. I'm unsure how to simplify this further.


When you bought the house, did your bank send your £x00,000? or did it go to your solicitor?....

HB58

OneDayCloserr wrote: »

It's not the mortgage redemption fee - I don't have any charges for paying off my mortgage. (Thankfully!!

Ah, sorry, I thought you actually used the words 'mortgage redemption fee'.

OneDayCloserr

Thankyou martinsurrey - that's exactly what I needed. Information as to why they were insisting.

Now I have it, I'm happy to go along with it.

Though it sure felt like I was being scalded left right and centre!!! I'm off for a lie down!!

Thanks guys, I appreciate it.

G_M

If you wish to redeem (pay off) your mortgage yourself - go ahead! Send the money to the mortgage lender, get the Charge removed from your property Title, and then sell your property.

No problem.

Oh? You can't afford to do that? You need to use the money from your sale in order to pay off the mortgage? In that case there is a well established process:

1) your buyer (or his solicitor) will see there is a Charge registered on the property(your mortgage)

2) The buyer will not want to buy a property with a Charge registered.

3) He (or his solicitor) will ask you (or your solicitor) if
a) you will remove the Charge before he commits to buy (Exchange of Contracts), or
b) your solicitor will 'give a solicitor's undertaking' that the Charge will be removed after Completion using the sale money

4) you cannot give that undertaking - why would he believe you? You might vanish with his money to the Bahamas, leaving him owning a property with your mortgage still registered against it. If you fail to keep up the mortgage payments, the lender would repossess his property!

5) your solicitor will give the undertaking. Your buyer will be happy (he trusts solicitors)

6) your solcitor will only give that undertaking (on your behalf), though, if he can guarantee the Charge will be removed. Since he, too, cannot rely on you (his professional reputaion and career are at stake) he will only do so if he can remove the Charge himself with the sale money.only

ReadingTim

It's a vicious circle:

• You can't sell the house until you pay off the mortgage
  
• You can't pay off the mortgage until you sell the house.

The solicitor is acting as a middleman to break the cycle because no-one would trust the vendor not to try and pull a fast one, trying to pocket the sale proceeds but "forgetting" to pay off the mortgage.

You cannot do what you propose. Deal with it.

saajan_12

You gave the answer in your OP:

OneDayCloserr wrote: »

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

A mortgage isn't just a loan you can pay off whenever - it's secured against the property. If the lender let you sell before paying off the mortgage, it would become an unsecured loan, so they won't remove the charge until it's paid off.

The buyer is paying for a mortgage free house so they will want the charge removed.

So, your solicitor undertakes (promises) to receive the money from the buyer and pay off the mortgage with it so the lender will remove the charge so the house can be sold. The buyer and the mortgage company both rely on this undertaking as the solicitor is insured and part of a professional body which you are not.

OneDayCloserr wrote: »

Thankyou martinsurrey - that's exactly what I needed. Information as to why they were insisting.

Now I have it, I'm happy to go along with it.

Though it sure felt like I was being scalded left right and centre!!! I'm off for a lie down!!

Thanks guys, I appreciate it.

Did this really just happen?!

OneDayCloserr

I've learned a lot today.

That the solicitors are quite rightly the people to deal with my mortgage redemption. Thank you to the people who were purely being helpful. I have sent an email to the solicitors apologising for not being aware of why it was not possible to do it myself and for wasting some of their time.

I've also learned that asking MSE Forum for help can be quite an unpleasant experience. Wow, some of you guys can be mean!

I simply didn't understand.

I asked for advice.

I got some really really mean comments and made to feel stupid for not understanding.

Although I'm very grateful that my query has been answered quickly, (and some of that understanding came from the people who were shirty/admonishing) I wonder if I would dare to come back if I need help in future? I guess only time will tell.

If I can ever answer someone's question I'll be even more sure to do it on a pleasant way due to the shock of this being rather a rollercoaster!

Anyhoo! It's only a forum. The sun is shining and it's Friday afternoon.

Have a good weekend every one x

Guest101

OneDayCloserr wrote: »

I've learned a lot today.

That the solicitors are quite rightly the people to deal with my mortgage redemption. Thank you to the people who were purely being helpful. I have sent an email to the solicitors apologising for not being aware of why it was not possible to do it myself and for wasting some of their time.

I've also learned that asking MSE Forum for help can be quite an unpleasant experience. Wow, some of you guys can be mean! - who? where? Quote them, I didn't see anything of the sort.

I simply didn't understand.

I asked for advice.

I got some really really mean comments and made to feel stupid for not understanding. - Other people aren't responsible for your feelings. If they were abusive, I could see your point, but mostly were helpful. I think many were surprised you weren't understanding something so basic

Although I'm very grateful that my query has been answered quickly, (and some of that understanding came from the people who were shirty/admonishing) I wonder if I would dare to come back if I need help in future? I guess only time will tell. - You should, it's a great place

If I can ever answer someone's question I'll be even more sure to do it on a pleasant way due to the shock of this being rather a rollercoaster!

Anyhoo! It's only a forum. The sun is shining and it's Friday afternoon.

Have a good weekend every one x

Goodluck with the house sale

csgohan4

I think OP you heard what you didn't want to hear, that is why in your opinion it was 'abusive'. The fact most people on here had the same advice should be clear enough.


You employ the solicitor, either should have got them to explain to you why or read up on current buying and selling practice