do you get settlement figures when selling house?

A

aoc

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may seem a naive question - but if you are to sell your house (with bank permission etc etc), do you get an early settlement figure from bank, just curious?
 
Just to clarify, if there is a mortgage on a property, then the lender will hold the Deeds and will only release the deeds to a solicitor on A.T. R. ( Accountable Trust Receipt- won't part with deeds unless can discharge entire mortgage or a figure agreed with the lender).

It is quite usual now for a vendor's solicitor to ask their own client for a recent mortgage statement or ask the Bank/lender for redemption figures before drafting Contracts for sale.

If the property is not in negative equity then the sale price will cover the redemption amount to clear the mortgage.

If in negative equity, then the vendor must approach the lender to see what, if any, arrangement can be arrived at in order to sell the house. A purchaser must be certain that the vendor's mortgage will be cleared off the title or else they cannot proceed.

I have had clients purchase properties where the vendor's lender has confirmed, in writing, that they will clear the mortgage off the title on foot of a contract price specified. What arrangement they come to with their client I do not know.

mf
 
i know that property is in negative equity - what i'm wondering is do banks give redemption figures, so then really you have an idea of what NE you will have at the end of it all.......

i understand re title etc.... but generally... like if you have a loan in the bank and you pay off early you get a redemption figure... something like that???
 
"what i'm wondering is do banks give redemption figures,"

Yes. They tell you what you owe them. That is what a redemption figure is.

If you mean - will they accept a figure that is less than the amount outstanding? -like a payment in settlement - you have to ask them if they will. And you cannot sell to anyone unless you can be certain that the mortgage will be removed from the title.

mf
 
If you want to know right now you NE you should just telephone the mortgage department and they will let you know today's redemption figure. You can also ask for it in writing. It changes everyday.
 
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