Solicitor didn't pay off my mortgage after property sale, then didn't remove the charge

EdmundWinchester

I bought and renovated a building which had 3 flats in it. I had a mortgage on the property, with charges on the three flats and the freehold.



I recently sold one flat. I had sent through the details of my mortgage to my solicitor and it was included in my seller information form.


Upon completion, the solicitor put the TOTAL sale price into my bank account and failed to pay off my mortgage.


I told them and this was eventually rectified and the mortgage was paid off. I haven't received any financial statements from the solicitors to show the massive transfers of money between us. My solicitor then emailed me confirmation that there were no charges on my property.



I found out 10 months later (through a third party) that there was still a charge on my property. I was able to remove the charge.


Did my solicitor break the law when they failed to pay off the mortgage on a property with a charge on it? I mean, it sounds pretty illegal.... but what do I know. :rotfl:I'd really welcome your thoughts because I honestly didn't think this was possible.


Does anyone know if having a charge on your property affects your credit score?



Is there a law/Act which relates to Charges on Property that someone can direct me to - for some light reading


thanks for your help!

worried_jim

Your credit score is a made up number only you see.

EdmundWinchester

Doesn't my credit score affect the amount of interest I pay on loans? Or whether I can even get a loan?

Herbalus

EdmundWinchester wrote: »

Doesn't my credit score affect the amount of interest I pay on loans? Or whether I can even get a loan?

Do you want a loan from the company offering you a credit score?

The score is just their interpretation of the data available to them. If you apply to an actual financial institution, they might take that data and their own data and make a decision based on their own criteria, which may be different to the company that gives you a credit score.

And no, the charge won’t affect your credit score.

EdmundWinchester

By credit score, I mean the data that affects loans and mortgages. I wasn't talking about Equifax/Clearscore etc.


Does having a charge on a property affect that data? Because I've just got a new mortgage and I need to know if having a charge on my property for 10 months longer than it should have been, has affected me financially.... can't find that answer anywhere.



Any thoughts on whether what my solicitor did was legal?

davidmcn

EdmundWinchester wrote: »

Did my solicitor break the law when they failed to pay off the mortgage on a property with a charge on it? I mean, it sounds pretty illegal.... but what do I know.

It would be illegal for them to steal your money and go on a one way trip to Brazil. What law do you think they might be breaking by sending your money to you? It is of course poor service if you were expecting the money to go directly to your lender, and I expect they were in breach of their undertaking to the buyers' solicitors.

Does anyone know if having a charge on your property affects your credit score?

The charge on your property has nothing to do with your credit record. When you pay off your mortgage, I think lenders record that on your credit record.

Is there a law/Act which relates to Charges on Property that someone can direct me to

You can read the Land Registration Act 2002 if you really want, but I'm not sure what you're looking for.

G_M

No law has been broken. No money has been stolen. You may have been charged for uneccessary money transfers. If so reclaim them.

Having said that the solicitor appears to have been pretty negligent and unprofessional. You could raise a complaint internally (especially if it's a large firm where a senior partner would review your (perhaps more junior?) solicitor's work.

You might be offered an apology and token payment

If ignored you could complain to the Ombudsman.
https://www.lawsociety.org.uk/For-the-public/Using-a-Solicitor/Complaints/

EdmundWinchester

Thanks guys for the feedback.


Yes I have written a lengthy complaint which I submitted to the partners. Eight weeks later, I still haven't received a response. The ombudsman is backed for several months but I will be sending my complaint to them.



Among other things they have done:
multiple small errors which I had to correct

ommitted my middle name on my title deeds so it doesn't match my passport/ID (this is an issue for lenders)

given incorrect advice about leases and the freehold

failed to pay off mortgage as instructed
failed to remove the charge on my property
failed to tell me about the charge on my property, and tried to sack me as a client because of their errors - (I discovered the charge when applying for a mortgage 10 months later).




There are a number of issues that need resolving - they don't seem to want to resolve them. I am trying to find another solicitor so I can sort this mess out (not easy). I also want my fees back as their service has been sub-sub-satandard.



thanks again for your feedback - I appreciate it.

G_M

I do wonder why it took you 10 months to discover the Charge was not removed.


Personally I'd have been checking that my lender had received the money and removed the Charge. Talking of which - it was for the lender to remove the Charge once they'd received the loan back. Are you sure they employed the solicitor to do that for them?

EdmundWinchester

I had written confirmation from the lender that the mortgage had been paid off - it took 4 weeks after completition.


I had written confirmation from my solicitor that there were no charges on the property.


I had no reason to expect my solicitor to lie to me, I thought she was just rubbish... but not a liar.


The only reason I found out was that my mortgage broker found it while doing a search. Turns out that my solicitor knew about it for the previous 10 months but failed to tell me.


So frustrating.

worried_jim

EdmundWinchester wrote: »

Doesn't my credit score affect the amount of interest I pay on loans? Or whether I can even get a loan?

That will be your credit history. A record of your ability to pay your bills on time.