Failure to complete

wilfred30

ellieh01 said:

The solicitor apparently was unaware that this remortgage had even happened. The remortgage was a quick procedure managed by a conveyancer appointed by our broker. 

It would suggest that your previous lender's charge is still showing on the Charges Register and that's probably because it takes time for the LR to update their records from one charge to another.

Although, when you sell, you have to give your solicitor the details of any mortgage to be repaid on completion so they can get a redemption statement so not sure why they are saying that they didn't know about it.

user1977

wilfred30 said:

ellieh01 said:

The solicitor apparently was unaware that this remortgage had even happened. The remortgage was a quick procedure managed by a conveyancer appointed by our broker. 

Although, when you sell, you have to give your solicitor the details of any mortgage to be repaid on completion so they can get a redemption statement so not sure why they are saying that they didn't know about it.

Because the only mortgage requiring to be redeemed is (presumably) the new one.

wilfred30

user1977 said:

wilfred30 said:

ellieh01 said:

The solicitor apparently was unaware that this remortgage had even happened. The remortgage was a quick procedure managed by a conveyancer appointed by our broker. 

Although, when you sell, you have to give your solicitor the details of any mortgage to be repaid on completion so they can get a redemption statement so not sure why they are saying that they didn't know about it.

Because the only mortgage requiring to be redeemed is (presumably) the new one.

Yes, indeed.  Which is why I said that I couldn't understand how the solicitor could say that they were not aware of the remortgage if the OP had put the details of it on the form!

AdrianC

wilfred30 said:

user1977 said:

wilfred30 said:

ellieh01 said:

The solicitor apparently was unaware that this remortgage had even happened. The remortgage was a quick procedure managed by a conveyancer appointed by our broker. 

Although, when you sell, you have to give your solicitor the details of any mortgage to be repaid on completion so they can get a redemption statement so not sure why they are saying that they didn't know about it.

Because the only mortgage requiring to be redeemed is (presumably) the new one.

Yes, indeed.  Which is why I said that I couldn't understand how the solicitor could say that they were not aware of the remortgage if the OP had put the details of it on the form!

But they would have put the details of the then-current one down when they started the conveyancing. The one that matches the charge.

Except that mortgage has been changed since, and the LR haven't registered the change in charge yet.

wilfred30

Ah yes, ok.  I think I didn't take into account that the OP had remortgaged with a different lender so late in the conveyancing process!  Sorry about that 

ellieh01

I used a broker for both the remortgage and the mortgage for the new house. The remortgage was straightforward and he recommended the solicitor they always use for these transactions. I don’t remember the current solicitor ever asking who our current mortgage was with, so this never came up. 

I had to remortgage in August because otherwise I would’ve been on the variable rate of 3.5% for goodness knows how long. We remortgaged to Nationwide at the broker’s recommendation. There’s no ERC. 

I spoke to our current solicitor about this issue two weeks ago, just after exchange, and she said it was not unusual and nothing to worry about. So I’m annoyed to be told at 5pm the weekend before completion that all was NOT in hand, and that I’ve to go back to my previous solicitor to get them to either expedite the application or cancel it. The current solicitor hasn’t said whether completion is at risk. Does anyone know?

csgohan4

ellieh01 said:

I used a broker for both the remortgage and the mortgage for the new house. The remortgage was straightforward and he recommended the solicitor they always use for these transactions. I don’t remember the current solicitor ever asking who our current mortgage was with, so this never came up. 

I had to remortgage in August because otherwise I would’ve been on the variable rate of 3.5% for goodness knows how long. We remortgaged to Nationwide at the broker’s recommendation. There’s no ERC. 

I spoke to our current solicitor about this issue two weeks ago, just after exchange, and she said it was not unusual and nothing to worry about. So I’m annoyed to be told at 5pm the weekend before completion that all was NOT in hand, and that I’ve to go back to my previous solicitor to get them to either expedite the application or cancel it. The current solicitor hasn’t said whether completion is at risk. Does anyone know?

So you remortgaged to get a better rate for 1-3 months ish, and all the while you have to pay 2 lots of exit fees plus other charges lenders may put in for redemption. Sure no ERC, but the administrative stress this puts you under is unmeasurable. LR changes take months and you now have jeopardized  potentially your sale for sake of a few months of lower mortgage payments.

This is a fine lesson future readers should learn when selling, not to be tempted to remortgage so close to completion

ellieh01

But there are no exit fees. The broker knew I’d only be with the remortgage lender for a couple of months. He didn’t see any problems with this. The saving was not insignificant. Two weeks ago our solicitor said this wasn’t unusual. 

I’m a bit confused about the charge on the register - surely even if I had NOT remortgaged, the charge would have had to be removed anyway? So the fact that there’s a delay is nothing to do with the remortgage?

In any case - does anyone know if this will actually affect completion?

csgohan4

ellieh01 said:

But there are no exit fees. The broker knew I’d only be with the remortgage lender for a couple of months. He didn’t see any problems with this. The saving was not insignificant. Two weeks ago our solicitor said this wasn’t unusual. 

I’m a bit confused about the charge on the register - surely even if I had NOT remortgaged, the charge would have had to be removed anyway? So the fact that there’s a delay is nothing to do with the remortgage?

In any case - does anyone know if this will actually affect completion?

I am not talking about ERC, but redemption fees for paying off the old lender as one example, there usually is, not to mention other fees which may or may not be in your case such as conveyancer fees, valuation e.t.c

The problem for you is you remortgaged, so the old charged needed to be removed and a new charge for the new lender,  your now selling so the new charge needs to be removed, but due the usual delays in LR and admin issues, the new charge is not there yet but the old one is still there.

I completed in August and I only got the updated LR in Nov, this was pre covid as well. 

Your broker may advise it would make sense from a financial sense, but what they didn't tell you, it's an admin nightmare.

My broker gave me 2 options, a slightly cheaper rate but nightmare to deal with, or slightly more expensive but easier to get offer. I chose the latter. 

You made a decision and it is now causing you issues By all means clarify with the old solicitor to see how to progress this, but LR is something you cannot rush because of your own decisions

The new lender may insist on being first charge at the very least to ensure protection for their investment/asset

user1977

ellieh01 said:

I’m a bit confused about the charge on the register - surely even if I had NOT remortgaged, the charge would have had to be removed anyway? So the fact that there’s a delay is nothing to do with the remortgage?

In any case - does anyone know if this will actually affect completion?

No, the point is that your selling solicitor deals with the redemption and discharge of your current mortgage - they know how much is required to redeem it, they make sure they have sufficient funds at completion to do so, they undertake to the buyers' solicitor that they'll deal with the discharge (like I said above) and they follow that process through.

But they didn't have anything to do with the redemption or discharge of your previous mortgage, so can't unilaterally start making undertakings to get discharges etc.

And yes, it will affect completion if it doesn't get sorted out before then, because nobody is going to buy without either your mortgages discharged or appropriate undertakings provided.