Receive comprehensive legal advice on mortgages from Buss Murton.
There are many different types of mortgages that our solicitors deal with, including Buy-to-Let-Mortgages, Re-mortgages, Commercial Mortgages, situations where Transfers of Equity are involved, as well as Equity Release.
We have an expert team of mortgage lawyers who are on hand to offer extensive legal advice, ensuring that the entire process is smooth and efficient.
How Does a Mortgage Loan Work?
A mortgage is a type of loan granted by a bank or a building society, known as the lender or mortgagee. This is usually granted for a long period, traditionally 25 years, and this period is known as the Mortgage Term. The borrower, also known as the mortgagor, offers his property as security for the loan. The borrower signs a legal document, known as a Mortgage or Legal Charge, which then secures the property to the lender for the period of the mortgage. The Legal Charge is registered at the Land Registry and appears in the Charges Register of the owner’s legal title.
How Do You Apply for a Mortgage Loan?
We can put you in contact with a mortgage broker or financial advisor who will help find the right loan for you. They will assist you with your application and you will then receive a ‘decision in principle’ on the amount you can borrow. A valuation is then carried out on the property and the mortgage lender, on sight of the property valuation and data backing up your application, then agrees to lend you the money for the property and issues a ‘mortgage offer’ to you and to us. We can then ascertain the lender’s requirements as well as carrying out other actions such as land registry checks, local authority searches and bankruptcy searches.
We are “panel members” for a number of high street lenders and this means that we have experienced knowledge of the respective lenders and a greater understanding of their requirements. Upon finalising the legal work, we can then issue you with the Legal Charge for signature. Once everything is in place we will liaise with your lender to ensure that the mortgage funds are available on the completion date.
The mortgage lender will then transfer the money to us in readiness for completion. Following completion, we will arrange to register the Legal Charge at the Land Registry.
If you are thinking about obtaining a mortgage or now have your decision in principle, then please do contact our solicitors so that we can help you through the process with our industry-leading legal advice.
How long will it take?
On average, the time likely to be spent to complete the transaction will be approximately three to six weeks, which includes the five working days’ notice that we are generally required to give to your lender to draw down funds.
The work involved which is included in the fee, is as follows:
- Receiving your instructions;
- Obtaining title information documents from the Land Registry to undertake title investigations;
- If there is an existing mortgage in place, writing to that lender to obtain a provisional redemption statement;
- If the property is leasehold, reviewing the lease to see what matters need to be dealt with under the terms of the lease, i.e. serving notice of the charge on the landlord/managing agent following completion and the fees for this and obtaining a leasehold information pack/replies to Form LPE1;
- In most instances a lender accepts a no search validation policy (lender only cover) which means that a Local Authority, Water & Drainage and Environmental search is not required. If that is the case, the cost of the indemnity insurance policy is applied to the final financial statement. If the lender requires full searches then these must be applied for and they take around 10-14 working days, again the cost of these would be applied to the final financial statement.
- Receiving the mortgage offer and reviewing the conditions and any requirements the lender requires us to check/perform. Once satisfied, reporting on such matters pertaining to the new mortgage with the mortgage deed for signing. If there is an occupier of the property or the property is let there will be further considerations to deal with, such as writing to the occupier with a Deed of Consent and Postponement and if the property is let, checking the Assured Shorthold Tenancy Agreement to ensure that this complies with the lenders requirements.
- Once all matters above have been completed, to agree upon a date to complete the re-mortgage, not usually less than 5 working days. Upon this being agreed, final priority searches and bankruptcy searches are to be submitted, a final redemption statement is obtained (if applicable) and a final financial statement is sent to you to approve.
- On completion of the re-mortgage, to redeem the existing mortgage (if applicable) and settle all costs and disbursements and account to you for any surplus. Thereafter to submit an application to the Land Registry for the registration of the new mortgage within the priority period of the searches and at the same time, to submit evidence of the existing mortgage discharge (if applicable) and once all matters have been completed at the Land Registry we then look to write to our client and the new lender (and freeholder/managing agent, if applicable) with confirmation of all matters having been completed and take steps to close our file.
We recognise how important it is that you have confidence in your legal advisor. Therefore, if you would like to have an initial discussion before deciding how to proceed, please do not hesitate to get in touch.
You can also contact individual team members directly by phone or email by clicking on our People page.