2 Mortgages - Selling one - mortgages linked

[Lobby]

Hi,

Thoughts on the following please:

We have 2 mortgages, one for our home, one on a rental property.

We are sale agreed on our home to relocate to Dublin. Thankfully, we will have a decent excess remaining after the sale is complete.

However, on our title and original loan offer docs, the following statement appears:

"The property to be mortgaged/charged is the one on this loan offer and the one known as XXXXXXXXXX" (same statement on both offers)

Our solicitor is concerned that we MUST pay any outstanding balance after selling our home (mortgage 1) into mortgage 2.

Our problem with this is it leaves us without a deposit to relocate to Dublin.

Surely, once the first mortgage is cleared then the above condition on mortgage 2 is null and void as the 2nd mortgage it refers to is extinguished?
How would PTSB know what our sale price was and that we have an excess after clearing mortgage 1?
Can we just refuse or is the solicitor obliged to use the proceeds against the 2nd mortgage?

Thanks

 

[mf1]

You're going to have to ask ptsb for redemption figures anyway - so do that now.

Even if they don't ( initially) pick up that the two mortgages are linked, it is likely to put your solicitor in an impossible situation i.e. completes sale and cannot get charge released without you clearing or crediting the other account.

Make that phone call to ptsb and ask them to confirm that €X will clear Mortgage A and that they will not require any payment off Mortgage B. Get that in writing.

If they cannot or will not, you need to review your plans.

mf