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JGM, Solicitor
Category: Law
Satisfied Customers: 12199
Experience:  30 years as a practising solicitor.
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We are due to buy a new house and sell our current house on

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We are due to buy a new house and sell our current house on Friday. We found out late yesterday afternoon that there is an inhibition possibly against my husband from the same bank that has approved our mortgage. We are not sure as his dad also has the same name and owns the address it is tied to but my husband also lived there for a period of time 9 years ago so solicitor has emailed company that completed the search for a dob also.We are unable to get financial amounts of this until monday. My husband tried contacting the bank and they knew nothing of it. We have only been able to determine it is there by speaking to the court that issued it. It seems to be on an old address from 9 years ago. My husband knows nothing of it and has never been made aware if it. Questions are,
Solicitor has told us we can't buy or sell if this belongs to my husband. Is there not something that can be done that will allow the sale to go through as long as the money is paid back at that point on Friday ?
Will the bank negotiate a settlement figure as we have little equity?
Will our mortgage also now be jeopordised?
Thank you for your question.
It sounds to me that this is his father's. If your husband hasn't stayed at his old address for nine years, it's unlikely that an inhibition would be taken against him at that address. An inhibition expires after five years, although it can be renewed.
If it is the father's then your husband simply has to sign a declaration to that effect and all is well.
If it is your husband's then any debt will have to be repaid in full before the inhibition is discharged, unless of course the bank are prepared to discharge it on the basis that they are getting a security over the new house in any event.
Given that the settlement is not till next Friday, there should be plenty of time for your solicitor to investigate this and find a solution.
Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.
From reading info on the debt line , it looks like the solicitor can put a mandate in place which allows the house sale to go through on the understanding the solicitor will pay the debt at time of house sale ?
The only dealings my husband had with this bank was a current account which wasn't used since 2006. The account also had no credit facilities so he is very confused.
What has also come to light is that since my husband moved out of the address , there has been some untrustworthy characters renting the property. We are worried of the risk of one of these possibly 'stealing' his account from a statement as he isn't sure if he had changed his correspondence address very quickly .
Either way, the non credit baring account t hadn't been used for at least 7 years.
Do you also know from what level of debt one of these inhibitions are granted for ?
That is correct, a mandate is possible if there is enough free proceeds to pay off th debt.
An inhibition can be applied for for any amount of sum sued for. The best way to deal with this is not to go throught the bank directly but to ask the Searcher who got the report of the inhibition to provide a copy of the registered Inhibition. That will tell you the solicitor who acted in the court action which results in the Inhibition. Your solicitor can then call them and get the details.
Customer: replied 3 years ago.
Would we be able to give the solicitor extra money to pay the debt off at the time of sale if there isn't enough in the house ? Is it feasible this can all be sorted prior to 7th? It seems we would incur all forms of charges if the sales were delayed in any way. Who is it that does this search? I don't understand how it has come to light so late in the day and when there is nothing on my husbands credit file anywhere that relates to it which I think is why our mortgage went through ok. Surely he should have a record of some sort of delinquent account ? I am so terribly stressed and don't know whether to continue packing the house up at present. Hello are you there ?
Yes you can fund any debt yourself if it is yours.
The search is carried out by the seller's solicitor. It isn't a credit search. It's a search in the property and personal Registers of Scotland and discloses (1) The state of the title so as to demonstrate that the seller has a title to sell you the house, (2) What securities have been granted over the house by the seller so that the purchaser's solicitor knows what to ask for in the way of Discharges and (3) What if any inhibitions there are that might affect the transaction.
The search has to be as up to date as possible and is typically done during the transaction and then updated and done again within two days of settlement.
So this has nothing to do with any credit search. It is a conveyancing search done by professional searchers instructed by the selling agent.
Your solicitor will know how to deal with this but he must immediately get onto the solicitors that raised the court action to find out the details.
Your husband may also want to speak to his father to find out if he knows anything about it or whether this is a case of identity theft.
Customer: replied 3 years ago.
Sorry can you define the sellers solicitor ? Our solicitor as sellers of the property, our new house builders solicitor or the solicitor of the person buying our house ?
A personal search will have been carried out by both your solicitor in relation to your sale and the solicitor selling the house you are buying. Both transactions are affected by the inhibition.
Customer: replied 3 years ago.
Would the solicitor or the couple buying our house not have done the same ? Their purchase would also be affected
Yes, as advised above.
JGM and other Law Specialists are ready to help you
Customer: replied 3 years ago.
So if it does belong to my husband then our solicitor can put a mandate in place to say it will be paid at point of sale and the house sale could go through on Friday as planned ok? Assuming it is not a ridiculous amount of money and we can gather enough funds to pay it whatever it is. Can we appeal it once it us cleared If we want to contest it ?
Yes that is correct. A mandate should be sufficient to allow the sale to go through.
If it does belong to your husband and goes back a while I very much doubt that you could contest it as any decree will be out of time for an appeal.
There's no point in considering that until you know the full story.
Customer: replied 3 years ago.
I read today that for the house sale to go through with a mandate, the creditor first needs to remove the inhibition which can take some time ? I'd thus true or does the mandate allow the sale to go through on the understanding the inhibition would then be removed ?
That is not what happens in practice.
The mandate is the creditor's "comfort" that he will be paid. The Discharge of the Inhibition is signed by the creditor and delivered in exchange for payment. Because the mandate guarantees payment, the selling solicitor can, at settlement, grant an undertaking to deliver the Discharge of Inhibition to the purchaser's solicitor, typically within 14 days of settlement.
Customer: replied 3 years ago.
Thank you, tha has been very helpful.