Property Finance Flashcards
What is an interest only mortgage?
The buyer makes monthly payments to the lender comprising only interest chargeable on the loan. Buyer needs to find an alternative way to pay off the capital sum borrowed.
What is an interest only mortgage?
The buyer makes monthly payments to the lender comprising only interest chargeable on the loan. Buyer needs to find an alternative way to pay off the capital sum borrowed.
Is it crucial to have an exchange of contracts + deposit?
It is usual to have an exchange of contracts, however it is also possible to exchange and complete on the same day, so it would not be necessary to pay a separate amount by way of deposit in advance.
When will most mortgages be discharged?
Most sellers will use the proceeds of sale to discharge the mortgage on completion. The seller’s solicitor should give an undertaking to discharge the mortgage immediately on completion; AND
The mortgage should be excluded from the list of incumbrances affecting the property.
A solicitor is acting for the buyer of a commercial property. The solicitor is carrying out an investigation of the registered title in order to ascertain what rights and interest might bind the buyer unless further steps are taken.
How will the solicitor know if the property is subject to an existing mortgage?
The mortgage must be protected by two entries in the Charges register and may also be protected by a restriction in the Proprietorship register.
One entry gives the date and purpose of the charge, one entry states the identity of the lender.
The lender may also wish to register a restriction in the Proprietorship register preventing the borrower from making a disposition without the consent of the lender.
