Purchasing a Property with a Mortgage – Be Aware!

When purchasing a property with a mortgage, there are a number of additional factors for your solicitor to consider that delay matters. Dealing with these in advance may prevent delays to your move. Below are just a few:-

  • Your solicitor does not only act for you, but your lender also. As such, they must consider your lenders needs and requirements as well as your own. Your lender has the same recourse to your solicitor as you would have if an error is made that affects the value of the property.
  • Your Lender requires us to check the source of funds for your deposit and also your identification. We ask for this information early on in the transaction. Providing this information to us at the outset saves us raising additional queries later on.
  • If you are borrowing money from a third party for your deposit i.e. parents as a loan or a gift please tell us straight away as we have to disclose this to your Lender and ensure they are happy with the arrangement.
  • When your solicitor requests your lender to release your mortgage funds to them to enable completion, they must sign a document called a ‘Certificate of Title’. This document is your solicitor’s confirmation to your lender that they have reviewed the title to the property and it is a good and marketable title suitable for lending against.
  • Before your solicitor can sign the Certificate of Title, they must ensure the following:-
    • That the actual purchase price is the same as the purchase price quoted in your mortgage offer, and ensure that all other information in your mortgage offer is correct. If there is any information contained in the mortgage offer which is incorrect, your solicitor is under a duty to report this to your lender.
    • If the property has had structural alterations or extensions which would require building regulations consent/planning permission, your solicitor must ensure the necessary permissions have been obtained.
    • If the property is a leasehold property and therefore subject to conditions contained in a Lease, your solicitor must ensure that the conditions in the lease have been complied with. Likewise if there are any other covenants and/or conditions affecting the property, your solicitor must ensure these have also been complied with.
    • If the property is new build, there are further additional checks your solicitor will be required to make by your lender for example, that a suitable new home warranty will be in place on completion such as NHBC.
If you have any questions, queries or concerns relating to any of the above information, please do not hesitate to contact us and we will be more than happy to assist.