discharge a mortgage deed (Scotland)

dollis

we have managed to pay off our mortgage - hurrah! The lender (Nationwide) has confirmed this but advises that we need to get the mortgage deeds discharged from the Registers of Scotland.
Do we really need to do this? We don't plan on selling our house anytime soon.

From what I can see, we would need a solicitor to do this, and the charges amount to £240 (that's £60 to RoS, and £180 solicitor fees). Why do we have to pay £240 to get our own deeds???
Any help appreciated!

G_M

Well do you really want a record of a mortgage you don't have lodged against your property?

You say you don't plan on selling, but for the sake of argument, what if you (both?) died in a plane/car/whatever accident? Your Executors (family/) would have the additional hassle of confirming the mortgage was paid and removing the charge before they could sell - al at a time of grief anyway.

I don't know the Scottish system, but with a little research you may be able to do this without a solicitor.


Keep your affairs accurate and up to date.

googler

First para here

https://www.mcsherryhalliday.co.uk/discharging-a-mortgage-in-scotland.html

You're not just "getting your deeds", you're legally removing the lender's charge on your home in which they held the whole of your home as collateral against the possibility you might default on payment.

This process removes their charge on your home, and legally removes your home from being their collateral. Until you get this done, strictly speaking, you don't own it; the lender still has first charge over the whole of it.

If you were to try and sell it, nobody would buy it, because the buying solicitor would become aware of the previous lender still holding the charge on it.

I suggest you get it done now.

googler

"We don't plan on selling our house anytime soon."

Plans change. As GM says, sometimes change is forced upon us.

davidmcn

googler wrote: »

If you were to try and sell it, nobody would buy it, because the buying solicitor would become aware of the previous lender still holding the charge on it.

That's probably overstating things - obviously it's pretty normal to be selling a property while it still has a mortgage running. The buyers will need the selling solicitors to undertake to discharge the mortgage at settlement, as normal.

The practical difficulty can be getting the lender to sign a discharge long after they've shut down the mortgage account, as they can be suspicious if they can't immediately see a reason for why they had the security in the first place.

Against that, the process is soon to be simplified with paperless discharge of mortgages which should make things cheaper (and reduce the need for a solicitor to be involved). Don't think there's been a date announced yet for that rolling out though.

dollis

thanks guys,
appreciate that no one knows the future but, all being well, we don't envisage moving as the house is adapted for disabled person.
Advice appears to be 'get it done' - just annoyed over the cost!
Might be possible without a solicitor but seems to require more forms, time, etc.

AdrianC

googler wrote: »

Until you get this done, strictly speaking, you don't own it; the lender still has first charge over the whole of it.

Yes, you DO "own it".

The fact they have a charge proves you do - because the charge is required to allow them to enforce the security of your property in the event of a default...

G_M

A very quick duckduckgo search (like google...) shows:

Discharge a mortgage deed

How it works - without a solicitor

For some transactions, you can submit the deed yourself.
The submitting party must ensure that the property transaction and deed meet the appropriate legal requirements.
We cannot give you any advice on how to draw up a deed. We advise you to consult a solicitor about any transaction you are undertaking.
You will need to establish if the property is on:

• the land register
• the sasine register

You can search the land register by postcode for free.
If you can't find the property you're looking for, you can ask us to conduct a search.
Once you have established the register, you’ll need a discharge deed to remove the charge.
You will need to include the appropriate forms and fees:

• Land register application form
• Sasine application form

If you are not a conveyancing solicitor, you will also need to submit an identification form.
You should submit your application to:
Registers of Scotland
Meadowbank House
153 London Road
Edinburgh
EH8 7AU
Fees

Our fees for the registration of a discharge are:

• £50 for digital applications
• £60 for paper applications

We charge a £30 fee if we have to reject your application.

dollis

thanks again guys,
I had seen that instruction for doing it without a solicitor, but took fright at the possibility of which register it might be on - if I searched the land register and found nothing, would that mean it was on the other register? And then there's the identification form...
but all in all, if the advice is get it done, then I think I will follow through the 'no solicitor' route and see what transpires. Maybe it will just cost the £60 which is a lot more palatable and justifiable since it requires the RoS to do some admin.
Hey ho, here goes!

G_M

Well since searching the registers is free, quick, and easy, what's the problem with searching both? Of course, if it's on neither, then you may have an issue, but only one way to find out!


I can't believe the ID form is too onerous......

davidmcn

dollis wrote: »

took fright at the possibility of which register it might be on - if I searched the land register and found nothing, would that mean it was on the other register?

Yes. Do you not have anything in the way of title deeds i.e. haven't the Nationwide sent you anything? Or are they with a solicitor? If you have a Land Certificate then it's on the Land Register.

Or to work it out another way, roughly where (town) is the property and when did you buy it?