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  • FIRST POST
    • Joemdt
    • By Joemdt 20th Feb 18, 11:29 PM
    • 6Posts
    • 1Thanks
    Joemdt
    Redeem Help To Buy. Do you need a solicitor?
    • #1
    • 20th Feb 18, 11:29 PM
    Redeem Help To Buy. Do you need a solicitor? 20th Feb 18 at 11:29 PM
    Looking to pay off Help To Buy equity loan using savings (so wonít be moving). Target HCA saying we need to pay for a solicitor but spoke to one who questioned their need to be involved and said itís as simple as agreeing a valuation, paying, then completing DS1 to remove second charge?

    Does anyone know why you would need to get a solicitor? I donít want to incur costs unnecessarily. Even for 2 hours time, a solicitor will charge about £300!
Page 1
    • amnblog
    • By amnblog 21st Feb 18, 8:32 AM
    • 10,548 Posts
    • 4,171 Thanks
    amnblog
    • #2
    • 21st Feb 18, 8:32 AM
    • #2
    • 21st Feb 18, 8:32 AM
    Can we assume you'd rather pick up the risk of getting it wrong yourself?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • dunstonh
    • By dunstonh 21st Feb 18, 10:24 AM
    • 92,966 Posts
    • 60,347 Thanks
    dunstonh
    • #3
    • 21st Feb 18, 10:24 AM
    • #3
    • 21st Feb 18, 10:24 AM
    EDIT: disregard this post. Typed it after multiple interruptions and didnt read it fully and jumped to the last line.

    Up until the late 90s, virtually everyone used a conveyancing solicitor for a full service. The solicitor would do the searches, report any issues, give you the risk warnings and check your contract. Nowadays, most do not.

    However, we have seen many posts on this board where people have later suffered issues which would have been avoided had they employed a full service from a conveyencor and not just the bare minimum. You also see media articles every few weeks from some householder stuck with something they said they were never told about when they bough the property. They would have been had they used the full service. They weren't because they didn't.

    ven for 2 hours time, a solicitor will charge about £300!
    Why the exclamation mark? That is the going rate for a professionally qualified individual. Plus, in the scheme of owning a property and the costs you will suffer over the years, that is absolute peanuts.
    Last edited by dunstonh; 21-02-2018 at 11:09 AM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • glentoran99
    • By glentoran99 21st Feb 18, 10:32 AM
    • 5,328 Posts
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    glentoran99
    • #4
    • 21st Feb 18, 10:32 AM
    • #4
    • 21st Feb 18, 10:32 AM
    Up until the late 90s, virtually everyone used a conveyancing solicitor for a full service. The solicitor would do the searches, report any issues, give you the risk warnings and check your contract. Nowadays, most do not.

    However, we have seen many posts on this board where people have later suffered issues which would have been avoided had they employed a full service from a conveyencor and not just the bare minimum. You also see media articles every few weeks from some householder stuck with something they said they were never told about when they bough the property. They would have been had they used the full service. They weren't because they didn't.



    Why the exclamation mark? That is the going rate for a professionally qualified individual. Plus, in the scheme of owning a property and the costs you will suffer over the years, that is absolute peanuts.
    Originally posted by dunstonh


    the OP isn't looking to buy a house though, they are paying off a loan
    • dunstonh
    • By dunstonh 21st Feb 18, 10:38 AM
    • 92,966 Posts
    • 60,347 Thanks
    dunstonh
    • #5
    • 21st Feb 18, 10:38 AM
    • #5
    • 21st Feb 18, 10:38 AM
    the OP isn't looking to buy a house though, they are paying off a loan
    Originally posted by glentoran99
    Good point. That will teach me to type a response whilst getting constant interruptions.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • csgohan4
    • By csgohan4 21st Feb 18, 12:17 PM
    • 4,537 Posts
    • 2,835 Thanks
    csgohan4
    • #6
    • 21st Feb 18, 12:17 PM
    • #6
    • 21st Feb 18, 12:17 PM
    Good point. That will teach me to type a response whilst getting constant interruptions.
    Originally posted by dunstonh
    probably from the insurance section
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • chanz4
    • By chanz4 21st Feb 18, 7:26 PM
    • 9,923 Posts
    • 2,887 Thanks
    chanz4
    • #7
    • 21st Feb 18, 7:26 PM
    • #7
    • 21st Feb 18, 7:26 PM
    It really shouldn't need one, as the first charge will still be your lender. Also should be treated as a secured loan
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
    • Thrugelmir
    • By Thrugelmir 21st Feb 18, 8:12 PM
    • 58,892 Posts
    • 52,217 Thanks
    Thrugelmir
    • #8
    • 21st Feb 18, 8:12 PM
    • #8
    • 21st Feb 18, 8:12 PM
    Does anyone know why you would need to get a solicitor?
    Originally posted by Joemdt
    There'll be legal matters to be attended to. The Help to Buy loan will be secured against your property by means of a second charge. Your main mortgage lender holding the first charge.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Joemdt
    • By Joemdt 21st Feb 18, 9:47 PM
    • 6 Posts
    • 1 Thanks
    Joemdt
    • #9
    • 21st Feb 18, 9:47 PM
    • #9
    • 21st Feb 18, 9:47 PM
    If it is just a simple process, i.e. just a matter of transferring money and then having the second charge removed then I think Iím capable of doing it without much risk. Iím just trying to establish if it is anymore complicated than that. I spoke to a solicitor who didnít know the exact process but questioned why I would need one. She said that a solicitor wouldnít get involved when a mortgage is redeemed (and the 1st charge removed) and couldnít see how this would be any different.
    • Joemdt
    • By Joemdt 21st Feb 18, 9:53 PM
    • 6 Posts
    • 1 Thanks
    Joemdt
    I get what you are saying about £300 being the going rate, perhaps I worded my point wrong. I was just trying to say, £300 would be a lot to paying if it is just a simple processes, not that the solicitor is overcharging. The solicitor has been very fair by trying to make sure that I donít incur costs unnecessarily
    • Thrugelmir
    • By Thrugelmir 21st Feb 18, 10:02 PM
    • 58,892 Posts
    • 52,217 Thanks
    Thrugelmir
    then having the second charge removed then I think I!!!8217;m capable of doing it without much risk.
    Originally posted by Joemdt
    A couple of risks that spring to mind. Is that the borrower doesn't pay the money across to the lender, or that the prson completing the forms isn't even the borrower, i.e. is committing fraud. Lenders therefore prefer the matter to be dealt with properly.

    You are in effect paying the lenders costs. Should matters go wrong. Then it's the solicitors professional indemnity insurance that pays up. One reason that their fees are so high. As there's thousands of pounds at stake.
    Last edited by Thrugelmir; 21-02-2018 at 10:05 PM.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Joemdt
    • By Joemdt 21st Feb 18, 10:06 PM
    • 6 Posts
    • 1 Thanks
    Joemdt
    There'll be legal matters to be attended to. The Help to Buy loan will be secured against your property by means of a second charge. Your main mortgage lender holding the first charge.
    Originally posted by Thrugelmir
    What do you mean by legal matters? To remove the second charge, a DS1 form is sent to land registry? Anything more than that?
    • Joemdt
    • By Joemdt 21st Feb 18, 10:34 PM
    • 6 Posts
    • 1 Thanks
    Joemdt
    A couple of risks that spring to mind. Is that the borrower doesn't pay the money across to the lender, or that the prson completing the forms isn't even the borrower, i.e. is committing fraud. Lenders therefore prefer the matter to be dealt with properly.

    You are in effect paying the lenders costs. Should matters go wrong. Then it's the solicitors professional indemnity insurance that pays up. One reason that their fees are so high. As there's thousands of pounds at stake.
    Originally posted by Thrugelmir
    If thatís the case then it makes you wonder what the £200 admin fee that Target HCA charge is for.
    • Thrugelmir
    • By Thrugelmir 21st Feb 18, 10:43 PM
    • 58,892 Posts
    • 52,217 Thanks
    Thrugelmir
    If thatís the case then it makes you wonder what the £200 admin fee that Target HCA charge is for.
    Originally posted by Joemdt
    Running any business comes at a considerable cost. There's only one source of income and that's the customer.

    Your employer makes a profit on the work you do. Without a profit there'd be no business, and you'd be out of work.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Thrugelmir
    • By Thrugelmir 21st Feb 18, 10:45 PM
    • 58,892 Posts
    • 52,217 Thanks
    Thrugelmir
    What do you mean by legal matters? To remove the second charge, a DS1 form is sent to land registry? Anything more than that?
    Originally posted by Joemdt
    Who is to say that you'll fill it in correctly. Not just you but every borrower in fact. Business works at the macro level not the micro.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Joemdt
    • By Joemdt 21st Feb 18, 10:51 PM
    • 6 Posts
    • 1 Thanks
    Joemdt
    Who is to say that you'll fill it in correctly. Not just you but every borrower in fact. Business works at the macro level not the micro.
    Originally posted by Thrugelmir
    I think it is them that need to complete the form though
    • NYA2017
    • By NYA2017 9th Apr 18, 9:58 PM
    • 7 Posts
    • 0 Thanks
    NYA2017
    I'm a bit late to the party here but I was under the impression it was to verify where the money was coming from. I could be wrong though.
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