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Bank Charge on Title of Property
ambriel
Posts: 4 Newbie
We bought our current house back in 2009. We paid £165,000 comprised of £35,000 cash and a £130,000 mortgage.
As is normal the bank has a charge registered on the title but I recently discovered this was for the full purchase price, £165,000, and not just for the amount of the mortgage. Is this normal or did the solicitor make a mistake?
As is normal the bank has a charge registered on the title but I recently discovered this was for the full purchase price, £165,000, and not just for the amount of the mortgage. Is this normal or did the solicitor make a mistake?
1
Comments
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Lender needs to cover the eventuality that you don't repay the debt in accordance with the contract you signed. Interest would accrue and the lender incur would recovery costs that they would seek to recover from the equity in the property. The mortgage charge placed on the property is therefore all encompassing and not for a fixed amount of money.0
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