Is the seller in negative equity? A necessary question on Conveyancing in Nottingham.

Looking at the title details of a flat on Dell Way, Clifton, Nottingham NG11 being purchased by her clients, Catherine Williams, the Conveyancing Solicitor dealing with the Conveyancing in Nottingham, was concerned because the sellers had two mortgages on the property.

Why would buyers Conveyancing Solicitors worry if they see that sellers have more than one mortgage? Surely they are the seller's problem, the buyer isn't going to have to worry about them.

In the current housing market many owners who borrowed heavily find when they come to sell that the price they get is not sufficient to pay off all the loans on the property. In other words, they are in negative equity.

So when Conveyancers carrying out Conveyancing in Nottingham for purchasers see more than one loan registered against the title they will want to know straight away before contracts are exchanged whether the seller will be able to repay all lending out of the proceeds of sale.

Buyers do not want to become liable for sellers' debts

Since mortgages are secured against property titles, buyers will become liable for them unless they are paid off. Consequently Property Lawyers acting for sellers are required to give undertakings to pay all money due to lenders at the time of completion. If sufficient funds are not available, then the sale cannot proceed unless the owner can persuade one or more of his lenders to accept less and still agree to remove their charges on the property.

The Conveyancing Solicitors acting for the sellers were Campions of 45-49 Mansfield Road, Nottingham, NG1 3FH, and the agents were Bairstow Eves of 238, Southchurch Drive, Nottingham, Nottinghamshire, NG11 8AA.

Catherine asked Campions to obtain redemption figures and check that their client was not in a negative equity situation. They did so and confirmed that they would be able to give the necessary undertakings on completion so that this Conveyancing in Nottingham could proceed without difficulty.

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