Cost to remove charge in property

TruthLove

Hi
i am thinking of putting in an offer on a repossessed property.  They want it all to move quickly.  There is a charge on the property and it will be my solicitors responsibility to remove it but this will be at an undisclosed cost to myself.
obvs I’m not big on walking into a surprise fee of an j specified amount but is this a normal thing?  I can’t find anything when googling.  Speaking to my solicitor Monday but trying to make a decision as they have messed me about said my offer was rejected then it wasn’t and I’ve found a new possible property.  

 Appreciate any knowledge on this and crucially, is there a maximum amount his could be?? Thanks 

user1977

There's no maximum. Who is the charge holder? 

TBG01

It's not the solicitors responsibility to remove it. Yes they will likely transfer the money to redeem it but it's the charge holders responsibility to either remove the charge or provide the necessary discharge documents.

Also why continue using this Solicitor when you're clearly already unhappy with them. To be clear though I'm not sure why they'd be telling you your offer has been rejected when that's a job for the estate agent.

TruthLove

TBG01 said:

It's not the solicitors responsibility to remove it. Yes they will likely transfer the money to redeem it but it's the charge holders responsibility to either remove the charge or provide the necessary discharge documents.

Also why continue using this Solicitor when you're clearly already unhappy with them. To be clear though I'm not sure why they'd be telling you your offer has been rejected when that's a job for the estate agent.

Oh sorry I’ve. Ot been clear.  This info is all coming from the estate agent.  They couldn’t be at self halting the process they just want it off their books. The vendor has stipulated my solicitor must look into removing the charge and there will be an undisclosed cost I just pay for them to do this

TruthLove

user1977 said:

There's no maximum. Who is the charge holder? 

There is no info, but the property is a repossession and vendor is the lender. Thanks

user1977

TruthLove said:

user1977 said:

There's no maximum. Who is the charge holder? 

There is no info, but the property is a repossession and vendor is the lender. Thanks

Well, none of us can guess what it is then. 

p00hsticks

TruthLove said:

user1977 said:

There's no maximum. Who is the charge holder? 

There is no info, but the property is a repossession and vendor is the lender. Thanks

There's often a charge on properties up for sale, from the morgage lender, and my understanding is that it's a normal part of the conveyancing process for the solicitor to find out how much these are for and to ensure that they are settled at the time of completion so that they can be removed when the Land Registry is updated with the new owners name. What your solicitor needs to do is ensure that the amount the property is being sold for willl be enough to settle any charged - if it;s a repossession there will be mortgage arrears which may amount to more than you're paying, and/or other secured loans taken out against the property.  

TruthLove

user1977 said:

TruthLove said:

user1977 said:

There's no maximum. Who is the charge holder? 

There is no info, but the property is a repossession and vendor is the lender. Thanks

Well, none of us can guess what it is then. 

What a gracious response thank you

user1977

p00hsticks said:

TruthLove said:

user1977 said:

There's no maximum. Who is the charge holder? 

There is no info, but the property is a repossession and vendor is the lender. Thanks

There's often a charge on properties up for sale, from the morgage lender, and my understanding is that it's a normal part of the conveyancing process for the solicitor to find out how much these are for and to ensure that they are settled at the time of completion so that they can be removed when the Land Registry is updated with the new owners name. What your solicitor needs to do is ensure that the amount the property is being sold for willl be enough to settle any charged - if it;s a repossession there will be mortgage arrears which may amount to more than you're paying, and/or other secured loans taken out against the property.  

Think there's some confusion - the charge held by the lender who is selling is automatically discharged by the sale - any shortfall is for them to deal with. This seems to be some other sort of charge. 

SDLT_Geek

p00hsticks said:

TruthLove said:

user1977 said:

There's no maximum. Who is the charge holder? 

There is no info, but the property is a repossession and vendor is the lender. Thanks

There's often a charge on properties up for sale, from the morgage lender, and my understanding is that it's a normal part of the conveyancing process for the [seller's] solicitor to find out how much these are for and to ensure that they are settled at the time of completion so that they can be removed when the Land Registry is updated with the new owners name. What your solicitor needs to do is ensure [by getting the usual confirmations from the seller's solicitor is] that the amount the property is being sold for willl be enough to settle any charged - if it;s a repossession there will be mortgage arrears which may amount to more than you're paying, and/or other secured loans taken out against the property.  

It is normal for the seller's solicitor to deal with this, not the buyers' solicitor.  See my notes in bold above.

Perhaps what is happening here is that the property is being sold under the exercise of the power of sale arising under the charge, in which case of course the charge will be removed in the ordinary process.  There really should be no difficulty then. 

Nor should there be a problem with later charges on the title if the sale is under the exercise of a power of sale under the first charge.  The later charges would then usually be "overreached" / or "overridden".

It seems that OP has only part of the story; the estate agent might not have told the story well either!

canaldumidi

EA is not a solicitor and does not understand.

OP is not a solicitor and does not understand.

Wait till Monday and get a full explanation of what issues there are/may be and how they will be resolved.

Which they will (provided the purchase goes to Exchange).

Meanwhile relax. Don't fret. This is not a unique situation and all will be revealed and resolved in due course