Redemption charge

Firsttimebuyer1991

Hello,

We’ve been ready to exchange for nearly two weeks now. Everything is done and we’ve agreed on a completion date of 15th October. We’re FTB and our seller who’s husband passed away is moving into an empty flat where the previous owner passed away, the conveyancer for the flat is waiting for the lender to come back to them and advise on a redemption charge, they were meant to come back to them on Friday but they didn’t and the estate agent has just called me to say we won’t be exchanging today as nothing has arrived still.

What exactly is this redemption charge? The estate agent never explains things in the best way and we so getting so frustrated now especially as this is nothing to do with us.

[Deleted User]

The vendor will have a mortgage on the property and the lender needs to send the solicitor a letter saying how much they are owed. This is a redemption statement.

A redemption charge is usually a small fee (less than £300 generally) charged by the lender to cover closing the mortgage down.

Maybe they sent a statement but the solicitor is querying if there should be a redemption charge as well. Or maybe they are just waiting for the redemption statement

G_M

Firsttimebuyer1991 wrote: »

Hello,

We’ve been ready to exchange for nearly two weeks now.
you may be ready, but until everyone else in the chain is ready,nothing can happen

Everything is done
No. Clearly it is not.

and we’ve agreed on a completion date of 15th October.
No. You've all expressed a hope to Complete on 15th. That's all it is.

We’re FTB and our seller who’s husband passed away is moving into an empty flat where the previous owner passed away, the conveyancer for the flat is waiting for the lender to come back to them and advise on a redemption charge, they were meant to come back to them on Friday but they didn’t
Then they cannot Excange. So nor can you.

and the estate agent has just called me to say we won’t be exchanging today as nothing has arrived still. Then Exchange will be delayed.

What exactly is this redemption charge? The estate agent never explains things in the best way and we so getting so frustrated now especially as this is nothing to do with us.

It is the amount of money the mortgage borrower must pay to their mortgage lender in order for the mortgage to be paid off in full, and the Charge on the property removed.

Everything that happens in the chain is to do with you. You are part of the chain so if something further up the chain delays things, as here, it affects you.

This happens all the time.

Firsttimebuyer1991

All I’m asking is what the redemption charge is. I am aware that we may be ready but not everyone else is and I’m frustrated enough without pedantic comments, please refrain and just understand the frustration!

G_M

and both I and JMA have explained what a redemption charge is. So chill!


I understand the frustration, but I'll decide for myself when/whether to 'refrain'!

Firsttimebuyer1991

I’m actually referring to you, do not tell me to chill.

G_M

Firsttimebuyer1991 wrote: »

I’m actually referring to you, do not tell me to chill.

Then do not tell me to refrain....

Firsttimebuyer1991

Theres no need to copy my post and write silly comments at the end of each thing that I said. That is very frustrating, you are clearly from this trade.. I am not so I came here for advice whilst frustrated with the situation.. your comments haven’t helped and all you needed to do was explain what I was asking or just not comment at all.

davidmcn

Firsttimebuyer1991 wrote: »

The estate agent never explains things in the best way

So stop talking to them. It's your solicitor who ought to be explaining to you what's going on.

G_M

You came to a public forum with a question. Two people responded and both answered your question. I added some additional comments pertinant to what you wrote in your post. If you did not need/want that additional information, you could have ignored it.


Show some gratitude, or next time approach professionals and if necessary pay them for advice/information you need.


Bored now, so will refrain!

eddddy

I'd guess it's the redemption statement that's needed.

This website seems to have a fairly good explanation:
https://www.whathouse.com/mortgages-and-homes/mortgage-redemption/

It says:

What is a redemption statement?

When you want to pay off your mortgage, you will need to request a redemption statement from your lender. This will outline the exact amount that your lender requires from you in order that you can fully repay your mortgage.

How long does a mortgage redemption statement take?

Your mortgage lender should provide a redemption statement to you or your solicitor within a matter of a few days. Service standards differ from lender to lender although he financial services regulator suggests that a lender should provide a redemption statement within 7 days of it being requested.

Delays in obtaining a mortgage redemption statement can slow up the conveyancing process. This can be a problem if you are moving home or your are remortgaging.