Mortgage redemption fee.

Retireby40

Situation not mine but someone I know.

Only parent died leaving a house to an only child. However the house still had a mortgage and they had no life insurance.

The child is in a position to pay the rest of the mortgage off at once not continue the mortgage. The mortgage left is only about 30k and they dont want to take a mortgage out.

When getting the redemption figure are they likely to incur any additional charges for paying the mortgage off early under the circumstances?

Is there any negotiation involved with the redemption figure. I dont mean trying to bargain but any kind of "ok due to the circumstances the interest you would have paid at the end of the year we wont date it back and stuff".

Friend seems to think they are going to get hit with all kinds of charges. Surely it's likely to just be the 30k that's left under the circumstances and no extra fees as it's being paid of due to unforeseen circumstances.

Retireby40

Also any ideas how much a solicitor would charge to change deeds of house/ organise with land registry etc and transfer into their name? 

davidmcn

If they want to know what the redemption figure is, they just ask. Unless there is a fixed term deal or similar ongoing then there won't be significant charges. The general principle is that you can pay off a mortgage whenever you want. And no, it doesn't make a difference what time of the year you do it, if that's what you meant. 

Thrugelmir

Interest will be charged on the balance owing until the date the mortgage is redeemed. .
Ring round a few local solicitors and obtain fee quotes. 

ACG

Interest is charged daily on most mortgages (I think Barclays still offer or until fairly recently still offered annual interest mortgages), so the interest stops being accrued the day the mortgage is cleared usually. The person involved needs to speak to the lender.

They may agree to waive the ERCs but I would not get your hopes up, no harm asking the question though. 

penners324

The Land Registry change is easy and doesn't need a solicitor. There's a form available on the Land Registry website for this.