How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Thomas Your Own Question
Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7602
Experience:  UK solicitor holding an England and Wales practising Certificate.
28732269
Type Your Property Law Question Here...
Thomas is online now

I plan on buying a flat by paying off a friends mortgage and

Customer Question

I plan on buying a flat by paying off a friend's mortgage and paying him an amount with respect to his equity in the property. Can I do this and how will we transfer the title deeds?
Submitted: 3 years ago.
Category: Property Law
Expert:  Thomas replied 3 years ago.
Hi

Thanks for your patience.

Yes, of course you can do this but I would strongly advise that you each instruct a solicitor to act on your respective behalfs.

This is because you will want to ensure that upon completion your friends mortgage is redeemed so that the lender then discharges their first legal charge. Until the lender has a first legal charge over the property you will not be able to have the property transferred in to your name.

They way it works in practice is that your solicitor and his solicitor would each hold a signed Land Registry Transfer immediately before completion. Your solicitor would then ask your friend’s solicitor for a Solicitor’s Undertaking to undertaken to redeem your friends mortgage from the sale proceeds and to arrange discharge of the lender’s charge.

Once your friend’s solicitor has given this undertaking the purchase can be completed, sale proceeds transferred and the Land Registry Transfers dated. A solicitor’s undertaking is essentially like a binding contract between solicitors which only solicitor’s firms can give.

Your solicitor will then also prepare your stamp duty return for you which you are obliged to submit and then apply to register your ownership in the property.

The reason that you should instruct solicitor is because your solicitor will check the title for the property and make the appropriate documentation to effect completion and registration.

If neither of your instructed a solicitor then your friend could take the money and not discharge the charge. You would then be relying on whatever agreement/understanding you had to discharge the mortgage and would have to litigate if he either ripped you off or something went wrong.

Please remember to RATE my answer OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE or above if you are satisfied that you have received the correct legal advice (even if it is not the answer you wanted to hear), otherwise I do not receive any credit for answering your question.

If you are not willing to rate my answer as OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE then allow me to assist further by replying asking what clarification you require rather than rating my answer at levels below.

If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”.

Kind regards,


Tom
Expert:  Thomas replied 3 years ago.

Is there any further information you require?

I just want to ensure that you are satisfied, so please let me know if you have any further queries on your position. Please remember to RATE my answer, if you are satisfied.

Kind regards,


Tom
Expert:  Thomas replied 3 years ago.


Is there any further information you require?

I just want to ensure that you are satisfied, so please let me know if you have any further queries on your position. Please remember to RATE my answer, if you are satisfied.

Kind regards,


Tom

Related Property Law Questions