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JGM, Solicitor
Category: Law
Satisfied Customers: 12086
Experience:  30 years as a practising solicitor.
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CONVEYANCING QUESTIONI have two charges on my property

Customer Question

I have two charges on my property first and second both with Lloyds bank.
I am selling the property but our solicitor refuses to exchange contracts until Lloyds bank confirm in writing that the redemption statement issued relates to both of the charges. Although Lloyds have confirmed verbally on the phone to the solicitor that the statement covers “all” of the Lloyds borrowings against the property unfortunately the redemption statement does not specify the charges registered. The monies outstanding being £20,000 are identified on the statement by our account number and 5 sub accounts, but no apportionment identified on the statement.
It has now been deadlock for 4 weeks with Lloyds unable to provide this clarification as they say they have never been asked before and it is the banks liability if they have missed any monies off the statement.
My question
1. What is the likelihood that another solicitor would take the case over and exchange and complete on the basis that our solicitor is being pedantic
2. Is there some sort of indemnity that we could offer our current solicitors to give them the confidence to exchange.
( our new property will be unencumbered and valued at £180,000)
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
Your solicitor is being ultra cautious here as from what you say alloys have confirmed that all your borrowings are detailed in the redemption statlement so logic would dictate that both charges are covered. Typically a redemption statement doesn't mention the charges over the property. At the same time your solicitor could cover the eventuality by confirming in writing to them that Lloyds have advised that all borrowings are covered.
In answer to your questions:
1. It is never a good idea to change solicitors in the middle of a property transaction but, yes, if this can't be resolved by them, another solicitor would I am sure take a more pragmatic view.
2. Other than depositing the money until the charges are taken off the record, nothing comes to mind.
Please leave a positive response so that I am credited for my time.