Once you have put in an offer on the property you wish to buy and the offer has been accepted by the seller, you should arrange your mortgage finance. At this stage you should also instruct a conveyancer or solicitor. The purchase conveyancing process involves various steps and it is very important to ensure things are done in the correct order and in a timely manner so as to avoid any unnecessary delay.
The mortgage offer usually takes at least a week to ten days to come through. The lender will arrange for a mortgage valuation survey to be carried out and this must be done before the mortgage offer is approved. One copy of the offer will be sent to you and one to your conveyancer or property solicitor. Once you receive your copy of the offer you will be asked to sign and return the acceptance form to acknowledge safe receipt of the offer and to confirm that you have accepted it.
The solicitor’s copy of the mortgage offer will also contain a mortgage offer and a deed of consent.
The mortgage deed will need to be signed by you (and your co owner if buying jointly) and your signature must be witnessed by an independent adult. The contents and effects of the mortgage deed must be explained to you to ensure you understand what you are signing and you are fully aware of the lender’s rights. By signing the mortgage deed you are agreeing to the terms of the mortgage and you are also agreeing to the lender securing a legal charge over the property for the duration of the term of the mortgage. (Note that if a mortgage is redeemed at any stage notification needs to be sent to Land Registry to have the charge removed).
Deed of Consent/Postponement
A deed of consent must be signed by any adult occupants who will be living with the Buyer at the property. A Deed of Consent effectively suspends any legal interest the adult occupant may have in the property while the lender has a legal charge over it. The deed must be signed before an independent solicitor who must also advise them of the implications of signing the deed.
The solicitor’s copy of the mortgage offer may also contain special conditions that must be looked into and dealt with by the conveyancer, e.g. relating to buildings insurance, redeeming another mortgage or the condition of the property. All conditions of the offer must be fulfilled before the matter proceeds to completion.
The mortgage deed is retained in the conveyancer’s file until completion. It will then be sent to Land Registry after completion along with the application to update the Proprietorship Register held at Land Registry. The mortgage deed should be returned by Land Registry and some lenders still require it to be forwarded to them after completion along with a copy of the updated Register (title information document) showing change in ownership.