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  • FIRST POST
    • Ycooper1
    • By Ycooper1 13th Mar 18, 10:46 AM
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    Ycooper1
    Mortgage redemption statement delaying exchange
    • #1
    • 13th Mar 18, 10:46 AM
    Mortgage redemption statement delaying exchange 13th Mar 18 at 10:46 AM
    Please can somebody offer me some advice??! I am pulling my hair out!!
    I am buying a property which is being held by the bank due to the previous owner having taken out a second mortgage which was not paid off before they passed away. Therefore, it needed to be sold before the family could receive any remaining funds after the settlement of the outstanding debt.
    The process has been a headache from the beginning, with the sellerís lawyers seemingly delaying the process every step of the way, with ultra slow responses and provision of information. The final straw came when on 19 Feb on the day we were supposed to exchange, my solicitor informed me that the sellerís solicitor had been unable to secure a mortgage redemption statement from the lenders! Apparently, it had been requested many weeks prior, but the lenders could not provide this before a valuation had taken place on the property, which they were not prepared to bring forward and was scheldurd for 28 February! This was the day that we had all proposed to complete. Despite jumping up and down and trying to pressurise the lenders to hurry things along, it has now been 2 weeks since the valuation, and STILL no sign of the redemption statement! The sellerís solicitor is apparently chasing this to no avail, other than being told by RBS that they have a backlog due to the snow last week, and they canít provide a timeline of how long we may have wait!!! This is a complete joke! I have a job I am due to be starting next Monday, and being that we re relocating to an area one and a half hours away, commuting will be a complete nightmare!! My buyers are getting fidgety ( understandably) and threatening to pull out if this isnít resolved quickly, and I am sat here at my wits end in floods of tears not knowing if everything is about to collapse all around my ears or what to do about it!! Any help would be appreciated! Many heartfelt thanks in advance
Page 1
    • hazyjo
    • By hazyjo 13th Mar 18, 12:15 PM
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    hazyjo
    • #2
    • 13th Mar 18, 12:15 PM
    • #2
    • 13th Mar 18, 12:15 PM
    How long has it taken so far? When did you offer?
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • G_M
    • By G_M 13th Mar 18, 12:26 PM
    • 44,082 Posts
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    G_M
    • #3
    • 13th Mar 18, 12:26 PM
    • #3
    • 13th Mar 18, 12:26 PM
    ......... unable to secure a mortgage redemption statement from the lenders! Apparently, it had been requested many weeks prior, but the lenders could not provide this before a valuation had taken place on the property, .......

    Originally posted by Ycooper1
    There's something more here that you aree not telling us or don't know.

    Why would a mortgage redemption statement be dependant on a valuation?

    My guess is that someone who is a Beneficiary of the will is wanting to ensure they inherit the right amount - hence want a Valuation. But that's just a guess.
    • davidmcn
    • By davidmcn 13th Mar 18, 1:06 PM
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    davidmcn
    • #4
    • 13th Mar 18, 1:06 PM
    • #4
    • 13th Mar 18, 1:06 PM
    There's something more here that you aree not telling us or don't know.

    Why would a mortgage redemption statement be dependant on a valuation?

    My guess is that someone who is a Beneficiary of the will is wanting to ensure they inherit the right amount - hence want a Valuation. But that's just a guess.
    Originally posted by G_M
    Or perhaps negative equity, bank have agreed to settle for the net proceeds of sale but want to make sure it's a reasonable price? The solicitors might know more, perhaps something has been lost in translation.


    Not much the OP can do about it in any event.
    • Ycooper1
    • By Ycooper1 13th Mar 18, 2:38 PM
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    Ycooper1
    • #5
    • 13th Mar 18, 2:38 PM
    • #5
    • 13th Mar 18, 2:38 PM
    Iím not 100% sure why a valuation is required to be completely honest! I assume that itís something to do with the percentage of the property value owed(?) if it was a secured loan or equity release that was outstanding debt on the property. All I know is that there was an unpaid debt upon the death of the original owner.
    Itís my guess that the sellerís solicitor left it right to last minute to apply for the mortgage redemption statement either not knowing about the valuation process or anticipating the delay !!!128533;.
    I was simply needing some constructive advice as to whether there is anything else I can do, as it seems ridiculous that the whole process has been halted by what should be something that by comparison, should only take s few days or a week at most!
    • Ycooper1
    • By Ycooper1 13th Mar 18, 2:42 PM
    • 4 Posts
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    Ycooper1
    • #6
    • 13th Mar 18, 2:42 PM
    • #6
    • 13th Mar 18, 2:42 PM
    G_M - The offer was accepted in October 2017
    • Amanda_Cm
    • By Amanda_Cm 13th Mar 18, 3:52 PM
    • 166 Posts
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    Amanda_Cm
    • #7
    • 13th Mar 18, 3:52 PM
    • #7
    • 13th Mar 18, 3:52 PM
    There is something you don't know or they don't tell you.
    What's your buyer situation? When did you accept the offer?
    • xylophone
    • By xylophone 13th Mar 18, 4:17 PM
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    xylophone
    • #8
    • 13th Mar 18, 4:17 PM
    • #8
    • 13th Mar 18, 4:17 PM
    Surely the house was valued (at least for probate) before the house was put on the market?

    Why does RBS require another valuation? Surely their only concern is that the loan should be repaid so that whatever the house is being sold for, as long as they are satisfied on that score, they have no further interest?

    And how can there be a redemption statement before redemption has taken place?
    • davidmcn
    • By davidmcn 13th Mar 18, 4:33 PM
    • 7,653 Posts
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    davidmcn
    • #9
    • 13th Mar 18, 4:33 PM
    • #9
    • 13th Mar 18, 4:33 PM
    how can there be a redemption statement before redemption has taken place?
    Originally posted by xylophone
    Because that's how it works. You ask the lender for a statement of how much you will need to pay to redeem the mortgage on a particular date, and they calculate it to include the accrued interest and any charges.
    • TBagpuss
    • By TBagpuss 13th Mar 18, 4:47 PM
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    TBagpuss
    It might be an equity release mortgage - I think they have to have a 'cap' to ensure that there is no negative equity, so the redemption figure might be affected by the value of the property.

    And if it was a home reversion scheme I think those normally mean that the loan company effectively owns a % of the house so again, valuation would be needed.
    Last edited by TBagpuss; 13-03-2018 at 4:49 PM.
    • Thrugelmir
    • By Thrugelmir 13th Mar 18, 6:02 PM
    • 58,474 Posts
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    Thrugelmir
    Surely the house was valued (at least for probate) before the house was put on the market?
    Originally posted by xylophone
    Not necessarily. If estate was well below the threshold for IHT. No formal valuation would have been undertaken. Perhaps probate is yet to be granted. Given that the estate's liabilities haven't yet been quantified.

    The process has been a headache from the beginning, with the sellers lawyers seemingly delaying the process every step of the way, with ultra slow responses and provision of information.
    Who are the Estates executors?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • G_M
    • By G_M 13th Mar 18, 6:29 PM
    • 44,082 Posts
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    G_M
    The reason, whatever it is, does not really matter.

    Probate sales always have an additional element of risk (over & above the uncertainty of any sale prior to Exchange).

    If Exchange cannot happen till.... the Valuation.... redemption statement..... whatever, then yyou have 2 choices

    1) wait, without knowing how long the wait will be, or

    2) walk away
    • Thrugelmir
    • By Thrugelmir 13th Mar 18, 6:34 PM
    • 58,474 Posts
    • 51,847 Thanks
    Thrugelmir

    1) wait, without knowing how long the wait will be, or

    2) walk away
    Originally posted by G_M
    This where the EA should be earning their commission and keeping everyone informed.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Ycooper1
    • By Ycooper1 13th Mar 18, 10:36 PM
    • 4 Posts
    • 1 Thanks
    Ycooper1
    Thankyou for all your replies! I became paranoid upon reading from some of them that there was indeed something that I was missing, ( Hence the frustration!) as some of the comments suggest that under normal circumstances a valuation to provide a redemption statement is not required. This has prompted me to scour through all the documentation that has already been received, and I have discovered on the title information that it says that the previous owner took out a Shared Appreciation Mortgage in 1997. Upon further research into this, it appears that the lender has a shared percentage of the current profit from the sale. Therefore, a valuation by the lender is required to determine the current market value.
    Why I haven!!!8217;t been told this information by either my solicitor or the EA I can!!!8217;t determine, and although it is ( in very small print) on the title information, it is only having researched what a shared appreciation mortgage actually is that I have some clarity. There is so much legal paraphernalia on the paperwork you receive, that I guess some of it you don!!!8217;t really look into! Lesson learned I guess!!
    So, as suggested, I guess I have to weigh up as suggested, do I walk or do I wait???....All down to my buyers At the end of the day. If they won!!!8217;t wait, then the decision is out of my hands
    • Amanda_Cm
    • By Amanda_Cm 14th Mar 18, 7:40 AM
    • 166 Posts
    • 200 Thanks
    Amanda_Cm
    Another option is selling to them and renting for a while.
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