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charges on a house
happydays11
Posts: 3 Newbie
I have just found out that the property I am buying has 2 charges on the property . Have I lost the house after paying for searches, survey etc or is there any hope I will still get it?
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I noticed a charge mentioned in the details for the flat we are buying, and my solicitor said it just means there is a mortgage outstanding on it, which will be redeemed by the seller out of the purchase monies.
I hope that is what it means as we are (fingers crossed) completing on Thursday!
I haven't bogged off yet, and I ain't no babe
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They do not have enough money to pay them0
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Do you mean they are in negative equity? I haven't bogged off yet, and I ain't no babe
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Yes they are0
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What does your solicitor say then? I haven't bogged off yet, and I ain't no babe
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If the seller has enough money with the sale of the house and funds from elsewhere, the sale can complete. Otherwise the sale will not be permitted to go through. Your solicitor is obliged by his/her code of practice to ensure that any registered charges are cleared on completion, and they have to be assured of that before they will exchange0
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The charge could be for any number of reasons, including non-payment of council tax. Is you solicitor sure it is the vendors lender that has placed the charge? Is it fully applied or interim?0
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i think any charges are or should be) settled by purchasers solicitor, on competion? the rest then goes to seller's sol..Long time away from MSE, been dealing real life stuff..
Sometimes seen lurking on the compers forum :-)0 -
i think any charges are or should be) settled by purchasers solicitor, on competion? the rest then goes to seller's sol..
No, all the money goes to the seller's solcitor who then has to settle the loans out of the proceeds. The buyer's solicitor will want a cast iron undertaking from the seller's solicitor that he will do that. Seller's solicitor won't give that undertaking unless he has enough money or lenders have said that they will still discharge the charges at the Land Registry and convert part of the debts to unsecured. Seller's solcitor might be able to negotiate that but don't hold your breath!RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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