Buying a property with a charge registered against the title

[Sarah_W]

What happens if you buy a property at auction (repossession) which has a charge registered against the title deeds (found from land registry website). Does this charge have to be paid off by the mortgage company on completion, or could I be liable for taking it on?

Tere are 2 charges - the most recent one seems to be the building society that is repossessing the property. Is it normal for there to be a charge and for it to be the responsibility of the seller to pay off?

[CIS121]

You should really be asking your solicitor this, BUT, any charges registered against the property are the responsibility of the mortgage company repossessing the property and cannot be passed onto you as the buyer. Even if the property is sold for less than the mortage amount owing, you still can't be passed on these charges and it will be cleared when transferred to you cn completion.

[therealpigdog]

Depends what the charges are but yes, they are usually cleared on the transfer out of the proceeds of the sale. Your solicitor should be able to advise - if they can't, then get a new solicitor.

[Sarah_W]

Thanks folks - my solicitors charge 100 plus VAT per hour and work in 30 minute blocks, so asking them the odd question here and there starts to become pricey.

Thanks ever so much for your kind help :-)

[mk1fan]

Yes, but cheaper than a land charge I assume?

Alternatively, do you have free legal advice cover as part of your Home Insurance?

[SwanJack]

Sarah_W said:

Thanks folks - my solicitors charge 100 plus VAT per hour and work in 30 minute blocks, so asking them the odd question here and there starts to become pricey.

Thanks ever so much for your kind help :-)

You need to find a different Solicitor. You can get fixed price conveyancing, I deal with legal costs and have not come across 30 minute block charging. Hourly rate being charged is fine though.

Edited by SwanJack on Thursday 23 April 14:23

[princeperch]

£100 + VAT an hour is cheap. I charge 115 an hour + VAT and i'm not qualified yet.

Essentially the bank reposseses and when its sold the banks solicitor will apply to discharge their legal charge at the land registry. If there are any further charges in favour by the bank, either to protect further advances they've made or charges to a lender of last resort, then assuming there is enough equity in the property, these should get cleared off at completion too.

You should get clean title when you purchase your solicitor should see to that. You should also really be getting a fixed price for the conveyencing..