O/T - Mortgages / 2nd charges - advice...

[Faldo]

A borng question, but one that I require an answer to nevertheless...

I bought my house (with the missus) 2 years ago with the aid of a grant from a govt housing scheme. The grant was set as a % of the property value, and was secured by a 2nd legal charge (i.e. ranked behind the bank).

2 years on, the property value has increased, and I am looking to re-mortgage to buy out the housing scheme before they get too rich... so I got a mortgage agreed and set the wheels in motion. 2 strange things have become apparent...

1) it seems that the housing folk do NOT have a 2nd charge on the property (clerical error)?
2) The housing scheme seem to thin kwe have paid them 90% of what they need anyway (which of course I have not).

Do I:
a) put my hands up and tell everyone everything? Whilst I have done nothing wrong, keeping quiet may possible put my house at risk at a later date.
b) keep schtum and live like a king of my newfound equity release?
c) zzzzzzzzzzzzzzzzzzzzzzzz

 

[Hiney]

As part of the whole process your solicitor will get 'office copies' which are copies of the entries in the Land Registry. This will cover the Proprietorship Register and the Charges Register. This will show details of everyone who has a Legal Charge on the property.

In addition, the solicitor will also write to the Housing Scheme involved to ask them for a formal settlement figure. If they haven't done this already, get them to do it.

Once you have this information, you will be able to see where you stand.

 

[Normal Rob]

tempted to say b but i'm not sure that i could sleep easily at night knowing that the proverbial knock on the door could come at any time...

 

[Faldo]

As part of the whole process your solicitor will get 'office copies' which are copies of the entries in the Land Registry. This will cover the Proprietorship Register and the Charges Register. This will show details of everyone who has a Legal Charge on the property.

In addition, the solicitor will also write to the Housing Scheme involved to ask them for a formal settlement figure. If they haven't done this already, get them to do it.

Once you have this information, you will be able to see where you stand.

Therein lies the rub...

The solicitors acting on my behalf are doing so on a free conveyancing type basis, and they seem to think that there is no charge resistered.

On the flip side, the 2nd charge holders (or not) already seem to think that someone has paid them most of the money due........ (about 80% of their loan amount)

I'm tempted to pay the amount they think I owe (20%), get a letter saying we are all square, and keep the leftover dosh in a mattress (or more sensibly, knock it off the mortgage in a few months).

 

[Uncle Spielberg]

even if you wing it now, it will catch up with you one day with interest charged on top as well probably

 

[beorhthelm]

get a proper solicitor (or pay the existing one for proper advice) and let them decide what the best option for you is. if they get it wrong, they have to pay out any costs from their advice being incorrect.

must be your clerical error

 

[TSB]

If i was still in my previous job i'd look it up for you.

What you could do is to apply for a 2nd charge somewhere else and let them do the work for you: if there's already one registered then they will contact the 2nd charge company to find out how much it is (plus, it should also be on your credit history, i think).

Then they will pass on this info to you )

 

[Hiney]

But free conveyancing or not, they still have to do certain things AND do them properly.

YOU ask for a copy of the Office Copies.

YOU ask the Housing Scheme for a settlement figure.

Then you can take it from there.

 

[terrymendez]

if you pm me i will get the "office copies"from the land registry , i have access through work. This will show whether their is a charge or not...

 

[Faldo]

Just a follow up to this...

I have successfully re-mortgaged, but the second charge (should it exist) has yet to be satisfied.

Whilst I have yet to see 'office copies', I understand that it would be impossible to transfer a mortgage without consent from the 2nd charge holder anyway - so the implication in this case is that the 2nd charge was never registered.

So...
- The housing scheme have no 2nd charge - I assume this makes things easier for me, as I do not need a solicitor to sort a discharge.
- The monies requested by the housing scheme (which is about half what I actually owe) can be paid by me. Should I come clean on their error?

Thoughts?

 

[Faldo]

Delayed bounce...

 

[tedebear]

Just a follow up to this...

I have successfully re-mortgaged, but the second charge (should it exist) has yet to be satisfied.

Whilst I have yet to see 'office copies', I understand that it would be impossible to transfer a mortgage without consent from the 2nd charge holder anyway - so the implication in this case is that the 2nd charge was never registered.

So...
- The housing scheme have no 2nd charge - I assume this makes things easier for me, as I do not need a solicitor to sort a discharge.
- The monies requested by the housing scheme (which is about half what I actually owe) can be paid by me. Should I come clean on their error?

Thoughts?

Sounds like a right royal bumble by someone - I'd not be sleeping well with that one hanging over my head. Either way - I'd pay the money off your mortgage - if they don't come knocking then you've paid it off quicker, if they do come knocking you'll have to draw it back down to the amount you originally intended.

Just pay the housing scheme and keep schtum, with the knowledge if they do come knocking you do have it, just not to hand...

How much are we talking by the way? More then £20k ?