A client will often presume that attaining borrowing
from a lender to be secured over their property
will lead to an early release of funds.
Whilst, having great expertise in this field,
are certain facts that a client should be aware of:
- The solicitor that they instruct will in the majority
of cases also be instructed by the lender to act
for them in dealing with their security over the
client’s property. The solicitor will then have
same duty of care to the lender as to
client that has instructed them in all respects.
- A Lender’s requirements of a solicitor are lengthy and
are set out in what is known as the Council of Mortgage
Lenders Handbook Parts I and II and also in the mortgage
instructions which the solicitor will receive directly from the lender
which includes a copy of the mortgage offer granted to you.
- Before your solicitor can apply for the release of the mortgage funds it is necessary for them to have the following:
- A full set of satisfactory search results which must be paid for by you (at a current cost of circa £370)
- The Lender’s instructions and copy mortgage offer
- A copy of the title to your property which the solicitor will obtain from the Land Registry and a full and satisfactory examination of it
- Full disclosure by you as to any structural alterations additions or extensions which you are aware have been made to the property and if appropriate evidence of any necessary Planning Permission or Building Regulations Consent/Final Certificate
- Copies of any Guarantees for Timber or Damp Treatment or the like
- Copies of any Guarantees for replacement windows/doors and other supporting documents
- Evidence of Buildings Insurance in accordance with the requirements of the Lender as set out in your mortgage offer
When these items have been received and are satisfactory your solicitor will then be in a position to complete what is known as their “Certificate of Title” and forward this to the mortgage lender, asking for drawdown of funds. The majority of lenders require a period of 5-7 working days from the receipt of the Certificate of Title for the funds to be supplied to your solicitor.
During the Mortgage process there may well be one point that has not been drawn to your attention when making your application and receiving your mortgage offer and this is the fact that any Bank Mortgage (of which your lender may be a subsidiary) is what is known as an “all moneys charge” over your property.
The implications of this can be far reaching and it is essential that you are fully aware of the mortgage which you are taking. If you are in any doubt, and after you have received your mortgage offer, ask your solicitor to explain such implications fully to you before proceeding.
You should estimate a period of between three and four weeks for your solicitor’s due diligence work to be carried out.
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