Feel like my head is going to explode!!

rose_T

Am sure you have seen my previous posts in regards to our house purchase. 

So a quick re-cap

buying in Scotland it’s a probate property with 4 executors. We were due to complete Friday 23rd sent deposit and solicitor fee’s to solicitors client account. 

We then get a email to say completion won’t go ahead due to an old mortgage security on the property. My solicitor believes this is just a paper issue and mortgage has been fully paid but never discharged. I also believe this as the house has been empty for around 4years and if there was outstanding money then am sure the bank ( TSB) would have taken possession. This mortgage security was registered in April 1983. Sellers solicitor has offered title indemnity policy to cover this problem. 

Tonight one of the executors called my husband to talk over what’s happening on their side, he said that the charge is due to come off in April 2023 when it hits 40yrs and this indemnity policy covers us. He said no money is due when his dad died his mum never kept on top of paper work so never discharged mortgage after final payment. 

He said his solicitor believes this is best cause of action to provide the indemnity policy and let the charge run its course and come off in 2 years time. 

Obviously we wanted the charge removed before completing but the way he was talking was that he didn’t want to do that as TSB has changed hands since 1982 and can take up to 4mths to investigate. When his solicitor opens the investigation that means they then can not provide indemnity policy. 

So question is If a mortgage has been paid in full and hasn’t been discharged after a number of years does this charge fall off? 

If that is the case and in 2 years time that old security falls off with the indemnity policy in place I don’t see a reason why we can’t complete. 

[Deleted User]

rose_T said:

Am sure you have seen my previous posts in regards to our house purchase. 

So a quick re-cap

buying in Scotland it’s a probate property with 4 executors. We were due to complete Friday 23rd sent deposit and solicitor fee’s to solicitors client account. 

We then get a email to say completion won’t go ahead due to an old mortgage security on the property. My solicitor believes this is just a paper issue and mortgage has been fully paid but never discharged. I also believe this as the house has been empty for around 4years and if there was outstanding money then am sure the bank ( TSB) would have taken possession. This mortgage security was registered in April 1983. Sellers solicitor has offered title indemnity policy to cover this problem. 

Tonight one of the executors called my husband to talk over what’s happening on their side, he said that the charge is due to come off in April 2023 when it hits 40yrs and this indemnity policy covers us. He said no money is due when his dad died his mum never kept on top of paper work so never discharged mortgage after final payment. 

He said his solicitor believes this is best cause of action to provide the indemnity policy and let the charge run its course and come off in 2 years time. 

Obviously we wanted the charge removed before completing but the way he was talking was that he didn’t want to do that as TSB has changed hands since 1982 and can take up to 4mths to investigate. When his solicitor opens the investigation that means they then can not provide indemnity policy. 

So question is If a mortgage has been paid in full and hasn’t been discharged after a number of years does this charge fall off? 

If that is the case and in 2 years time that old security falls off with the indemnity policy in place I don’t see a reason why we can’t complete. 

There is no completion in Scotland. Do you mean that you had planned so conclude the missives on Friday? 

What is your solicitor saying about the mortgage charge and the proposed indemnity policy? 

Do you still want to go ahead with purchasing this property or have you reached the stage of wanting to withdraw your offer? 

[Deleted User]

And in your previous thread you say your solicitor has advised you not to accept the indemnity policy. Why do you want to ignore the advice YOUR solicitor is giving you? 

https://forums.moneysavingexpert.com/discussion/6284550/weird-one-anyone-come-across-this-before/p1

Thrugelmir

If you require a mortgage, then the lender maybe the one not agreeing to an indemnity policy. Ultimately they set the terms. 

rose_T

Lover_of_Lycra said:

And in your previous thread you say your solicitor has advised you not to accept the indemnity policy. Why do you want to ignore the advice YOUR solicitor is giving you? 

https://forums.moneysavingexpert.com/discussion/6284550/weird-one-anyone-come-across-this-before/p1

I never said I was ignoring my solicitor. 

I was just wanting to clarify what the executor has told my husband this evening that the old security will fall off in April 2023. My solicitor is on holiday until the 4th so I can not contact her at the moment. 

Is there a certain amount of years after a mortgage has been paid in full if it was not discharged does that mortgage fall off? 

I know there isn’t completion in Scotland it’s date of entry but most of the people on this form talk about completion so thought it would be easier. We were due to settle on Friday 23rd. 

Yes we do want to purchase the property

[Deleted User]

rose_T said:

Lover_of_Lycra said:

And in your previous thread you say your solicitor has advised you not to accept the indemnity policy. Why do you want to ignore the advice YOUR solicitor is giving you? 

https://forums.moneysavingexpert.com/discussion/6284550/weird-one-anyone-come-across-this-before/p1

I never said I was ignoring my solicitor. 

I was just wanting to clarify what the executor has told my husband this evening that the old security will fall off in April 2023. My solicitor is on holiday until the 4th so I can not contact her at the moment. 

Is there a certain amount of years after a mortgage has been paid in full if it was not discharged does that mortgage fall off? 

I know there isn’t completion in Scotland it’s date of entry but most of the people on this form talk about completion so thought it would be easier. We were due to settle on Friday 23rd. 

Yes we do want to purchase the property

Most people talk about completion because they are talking about property purchases in rUK. It is not helpful to conflate terms otherwise you’ll get a lot of advice based on English law which is not appropriate. Posters also cannot tell when you say “completion” if you mean concluding the missives or date of entry so which is it? Have you definitely concluded the missives? 

The charge doesn’t “fall off” after 40 years. It still exists it’s just that the period of search is limited to 40 years but it should still be disclosed on the title sheet. This is probably one of the reasons your solicitor has advised you against the indemnity policy in the first place and as you’re not going to ignore your solicitor it’s moot anyway. Is there no one else at the firm you can speak with before your solicitor returns from leave? 

https://rosdev.atlassian.net/wiki/spaces/2ARM/pages/188694606/Securities+Section+Information#SecuritiesSectionInformation-Wheredischargecannotbeobtained-Certificateofconsignationordeclarator

Titus_Wadd

I'd rely on the solicitor's advice rather than that of the executor; he just wants to get the house sold.