Often when you buy a property with a mortgage the lender will request us to act on their behalf as well. This is because the lender’s and the buyer’s interests are usually the same – to ensure the property is being bought with good title and it is worth the amount being paid for it (or what they are lending you). It should, in theory, save time and resource.
The lender will issue two mortgage offers; one to the client and one to the solicitor. The client copy often is received a few days before the solicitor copy but we need the solicitor copy because it contains a few more documents namely the mortgage deed and the certificate of title.
The mortgage deed is what is signed by the buyer and is registered at Land Registry on completion. This is the document used by the lender to register their charge over the property. This charge will not be removed until the mortgage is repaid.
The certificate of title is what we use to request the mortgage funds. Rather than provide the lender a report on each and every file, the certificate then informs the lender that we have done all our investigations and we are happy to proceed. This is usually submitted after exchange of contracts when a completion date has been agreed and the funds will be sent to us in time for completion.
Upon receipt of the mortgage offer we have to check through the document. The kinds of information we are looking for include: the purchase price, the valuation of the property, the loan amount, the term (length of the loan), any conditions attached to the mortgage and any comments made by the valuer. We are looking at this information to see if it makes sense in respect of our instructions and from what information we have gathered from our investigations.
Sometimes the mortgage will come with conditions. These can be varied but often they include the buyer paying off debt or an agreement to undergo some work at the property after completion. It is our role to ensure to ensure we draw your attention to these conditions and to obtain confirmation that they will be complied with.
It is important to note that we are not financial advisers and cannot provide advice on mortgage products themselves. All such questions should be directed to the lender directly, your financial adviser and/or mortgage broker.
If you’re currently going through the house buying process and need legal assistance, or have any queries on this article do not hesitate to get in touch with us here at Jordan’s. Jordan’s Solicitors are based in Wakefield and Dewsbury, we’re confident in the service we provide, whilst always ensuring the best possible outcome for our clients. Give one of our friendly team a call now on, 0330 300 1103 or click here and request a call back.