Cost to remove charge in property

SDLT_Geek

canaldumidi said:

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

Best reply so far!

Tiglet2

TruthLove said:

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 

If the property was repossessed by the lender, would it not be their own loan that they want paid?  In that case, I'm guessing that your solicitor sends the lender the monies on completion, if your solicitor is also acting on behalf of the lender.  The lender can submit the discharge application (DS1) to Land Registry to remove the charge, providing the monies are sufficient to clear the debt. 

If your solicitor is not acting for lender, the lender will appoint their own solicitor and they will expect you (the buyer) to pay their legal fees as well as your own.

Your solicitor won't know how much the lender's solicitor's fees are until they ask.

canaldumidi

Tiglet2 said:

TruthLove said:

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 

If your solicitor is not acting for lender, the lender will appoint their own solicitor and they will expect you (the buyer) to pay their legal fees as well as your own.

Would that not constitute a conflict of interest?

Tiglet2

canaldumidi said:

Tiglet2 said:

TruthLove said:

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 

If your solicitor is not acting for lender, the lender will appoint their own solicitor and they will expect you (the buyer) to pay their legal fees as well as your own.

Would that not constitute a conflict of interest?

Hmmm, yes you are right.  I'm getting mixed up, apologies.  

TruthLove

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.  

Thanks So if the arrears are more than I’m paying could I be charged for the remainder?  I don’t know why I may be charged as I thought it didn’t cost to have A charge removed other than my solicitors time. 

TruthLove

Tiglet2 said:

TruthLove said:

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 

If the property was repossessed by the lender, would it not be their own loan that they want paid?  In that case, I'm guessing that your solicitor sends the lender the monies on completion, if your solicitor is also acting on behalf of the lender.  The lender can submit the discharge application (DS1) to Land Registry to remove the charge, providing the monies are sufficient to clear the debt. 

If your solicitor is not acting for lender, the lender will appoint their own solicitor and they will expect you (the buyer) to pay their legal fees as well as your own.

Your solicitor won't know how much the lender's solicitor's fees are until they ask.

Thanks when I first enquired the cost  was for them to remove the charge but now they are saying my solicitor will be responsible for removing it after exchange AND there may still be a cost involved in doing so - could this mean paying any remaining arrears?

user1977

TruthLove said:

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.  

Thanks So if the arrears are more than I’m paying could I be charged for the remainder? 

No, like I said above any shortfall due to the lender who is selling is their problem, you get the property clear of their charge. This is either some other charge, or something has been lost in translation. 

TruthLove

user1977 said:

TruthLove said:

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.  

Thanks So if the arrears are more than I’m paying could I be charged for the remainder? 

No, like I said above any shortfall due to the lender who is selling is their problem, you get the property clear of their charge. This is either some other charge, or something has been lost in translation. 

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

TruthLove

user1977 said:

TruthLove said:

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.  

Thanks So if the arrears are more than I’m paying could I be charged for the remainder? 

No, like I said above any shortfall due to the lender who is selling is their problem, you get the property clear of their charge. This is either some other charge, or something has been lost in translation. 

Ok thanks.  That’s what I thought and that’s what my solicitor said.  It’s all a bit wierd and dodgy.  I wonder if it is them just trying to get their solicitors fees paid.
So as far as you know there is no way any issue could arise from my solicitor being lumbered with the removal of the charge after exchange then? No barriers to completion and no surprise costs?
thanos so much for your input btw.  I don’t want to start getting my solicitor properly involved until I know I’m buying if that makes sense but will have to pass on what the estate agent os saying and no doubt they will have to speak to them directly if I’m to get to the bottom of it

GDB2222

TruthLove said:

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.  

Thanks So if the arrears are more than I’m paying could I be charged for the remainder?  I don’t know why I may be charged as I thought it didn’t cost to have A charge removed other than my solicitors time. 

No. The lenders have repossessed, and you are buying the property free of all charges.   At least, that's how it normally works for repos.