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Sale process - how does it work?
Greymug
Posts: 369 Forumite
Hi, I'm currently selling my property, I have accepted an offer from a buyer who is now going through their mortgage application.
I could ask my solicitor but I guess you guys know this just as well: what happens after the mortgage is approved?
I currently have a mortgage on the property I'm selling, which will be paid off early, but who sort these things out? Is it the solicitor? Like, will the solicitor call up my current lender, pay off the remaining balance on my behalf and then just give me the equity sum? Or will I get the whole sale price (minus solicitor/ea fees) into my bank account and then I have to arrange to extinguish the mortgage myself?
Thanks
I could ask my solicitor but I guess you guys know this just as well: what happens after the mortgage is approved?
I currently have a mortgage on the property I'm selling, which will be paid off early, but who sort these things out? Is it the solicitor? Like, will the solicitor call up my current lender, pay off the remaining balance on my behalf and then just give me the equity sum? Or will I get the whole sale price (minus solicitor/ea fees) into my bank account and then I have to arrange to extinguish the mortgage myself?
Thanks
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Comments
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Your solicitor will redeem your mortgage. You will get any funds that are left over after the mortgage, solicitors and estate agents have been paid.1
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Your solicitor has to promise the lender that the mortgage will be repaid from the completion funds in order for the lender to lift their charge and allow completion to happen.1
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So you're only selling a property - you're not buying another one at the same time?
People often sell their 'old' property and buy a 'new' property on the same day.
If you were buying and selling on the same day, the solicitor would deal with all the money aspects, including...- Getting funds from the 'new" lender for the 'new' mortgage on the 'new' property
- Getting any extra funds from you that are needed
- Paying off the 'old' lender for the 'old' mortgage on the 'old' property
- Paying the 'new' property owner's solicitor for the 'new' property
- Paying you any funds that are left over
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Cheers, good to know I don't have to lift one fingerRelievedSheff said:Your solicitor will redeem your mortgage. You will get any funds that are left over after the mortgage, solicitors and estate agents have been paid.
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