Redeemed a mortgage without Solicitor

mfz1

In the process of redeeming the mortgage. The bank gave me the option of using a solicitor or not. I want to do it myself.

The bank has sent me 3 things now. DS1, TR1 and a power of attorney.

The forms are all filled out and signed by the banks solicitors. I know I need to sign panel 12 (on tr1) Once this is done, I intend on sending this accompanied with a ap1 and id3 forms to land registry.

Anything else to consider or I should be mindful of? The only thing of note is that the house is a leasehold and it will only be transferred into my name. Any guidance or help would be much appreciated.

SDLT_Geek

mfz1 said:

In the process of redeeming the mortgage. The bank gave me the option of using a solicitor or not. I want to do it myself.

The bank has sent me 3 things now. DS1, TR1 and a power of attorney.

The forms are all filled out and signed by the banks solicitors. I know I need to sign panel 12 (on tr1) Once this is done, I intend on sending this accompanied with a ap1 and id3 forms to land registry.

Anything else to consider or I should be mindful of? The only thing of note is that the house is a leasehold and it will only be transferred into my name. Any guidance or help would be much appreciated.

Is the property in England?  If so you should consider whether any stamp duty land tax is due on the transfer into your ownership or if a land transaction return will need to filed with HMRC.

The Land Registry will want the see a land transaction return certificate (SDLT5) or to understand why no return was needed.

EssexHebridean

Can you clarify exactly what is happening here? You mention redeeming a mortgage, but then refer to a transfer, and indeed a TR1 - so where does the transfer come in to things? 

If a transfer IS happening, then an SDLT5 may be required depending on the nature of that as SDLT Geek says. 

chrisw

 I have redeemed two mortgages recently, Nationwide and Birmingham Midshires, but didn't have to do any paperwork, I phoned them up to get a closing balance for the day I planned to pay it off and just transferred the money by bank transfer. I had to do it over several days due to the transfer limits. The banks themselves removed their interest from the land registry, I downloaded the title deeds a bout 6 months after just to ensure they had, and they had.

propertyrental

mfz1 said:

In the process of redeeming the mortgage.

The bank has sent me 3 things now. DS1, TR1 and a power of attorney.

Why a TR1?  Is ownership transferring as well as mortgage being redeemed? If so from who to whom?

Why POA? Who is the Attorney and who is the Donor? Why is a POA needed?

There is more going on here than you have explained.........

GoogleMeNow

chrisw said:

 I have redeemed two mortgages recently, Nationwide and Birmingham Midshires, but didn't have to do any paperwork, I phoned them up to get a closing balance for the day I planned to pay it off and just transferred the money by bank transfer. I had to do it over several days due to the transfer limits. The banks themselves removed their interest from the land registry, I downloaded the title deeds a bout 6 months after just to ensure they had, and they had.

Yes, this is what you would do when paying off your own mortgage on your own property.  I think OP is trying to pay off the mortgage on a property owned by someone else (reference to Power of Attorney) and also trying to transfer the property to his own name (reference to TR1 and AP1).

user1977

propertyrental said:

mfz1 said:

In the process of redeeming the mortgage.

The bank has sent me 3 things now. DS1, TR1 and a power of attorney.

Why POA? Who is the Attorney and who is the Donor? Why is a POA needed?

 I would guess to evidence that the bank's authorised signatory is in fact authorised?

mfz1

I am so glad I posted here before doing any of this. The bank is Al Rayan Bank. When mortgaging with them they are shared owners. I assume the TR1 is then to relinquish their name (hence POA), DS1 to remove their interest on it. 

The title register currently shows two parties, the bank and me. The TR1 that has been sent is pre-filled with their details and has been "executed as a deed" (it has a signature) by their solicitor.

Really good point on the SDLT, SDLT_Geek said:

The Land Registry will want the see a land transaction return certificate (SDLT5) or to understand why no return was needed.

I know I paid the SDLT when I first purchased the property, will need to dig out some evidence to this fact.

user1977

Ah right, it's a Sharia compliant mortgage, so they are in fact transferring ownership to you?

Not sure what the SDLT situation is, I guess there's a relief from having to pay any duty.

TBG01

Is there a freeholder and or management company that "looks" after the property/building?

Not always, but they tend to put a restriction on the title that stops any disposition happening without them providing a compliance certificate that confirms  x, y & z has been done.

SDLT_Geek

user1977 said:

Ah right, it's a Sharia compliant mortgage, so they are in fact transferring ownership to you?

Not sure what the SDLT situation is, I guess there's a relief from having to pay any duty.

I think that is right, there are reliefs from SDLT designed to put those using alternative property finance structures into the same position as someone with a regular mortgage.

I do not know though whether a land transaction return is needed, it is a rather specialist area.