A Legal Charge gives security to a lender for money you owe by registering a charge against your property. The charge (called a Standard Security in Scotland) is registered with Land Registry (properties in England, Wales and Northern Ireland) or Land Register of Scotland (properties in Scotland).
You will need to request a redemption statement. This will confirm the full amount required to settle your remaining mortgage balance and close your account.
A redemption statement is valid for 30 days from the date it is produced.
The redemption statement is valid for 30 calendar days from the date it is produced, the expiry date will be on the statement.
If the mortgage is due to redeem after the statement expiry date, you need to request a new redemption statement.
If you redeem your mortgage between 1 and 30 days after the redemption statement issue date, you need to add the account's daily interest rate (shown in the statement) to the redemption amount. For example, if you redeem 11 days after the issue date, you need to add 11 days of daily interest.
To understand any redemption fees that apply to your account, please check your mortgage offer pack and redemption statement.
The costs and fees that may apply:
Please refer to your official mortgage offer pack. The section will be titled 'What happens if you do not want this mortgage anymore' or ‘Early Re-payment’ and provides full details.
In this situation, any early repayment charge will be waived.
We do accept cheques to make the final redemption payment.
If you make the final payment by cheque you need to add the daily interest for 5 extra days, to allow for the cheque to clear. The redemption statement confirms the daily interest for your account.
You’ll need to provide your bank with the account details shown on your redemption statement. Your bank will then forward the funds to us.
We occasionally ask for further information, as we are required to show evidence of source of funds due to anti money laundering legislation.
For example, if you are using savings, we may ask to see bank statements that evidence the build-up of this money in your account.
After we receive the full settlement amount, we will arrange for our Legal Charge on your property to be released, and then write to you or your solicitor if they are acting on your behalf to confirm your mortgage is redeemed.
If you're moving out of the mortgaged property, please let us know your new address to make sure you receive any final correspondence from us.
If your property is in Scotland or Northern Ireland, you need to appoint a solicitor to help manage the final part of the redemption on your behalf. Once the mortgage is repaid in full, your solicitor needs to prepare an application to arrange for the Standard Security or Legal Charge to be removed from official land records; referred to as discharging. Once this has been completed your solicitor will notify you that the Standard Security or Legal Charge has been discharged.
For properties in Scotland, we can appoint a solicitor to manage this for you and our team will confirm the cost.