Case Study: Helping A Client Escape A Penalty On A Property Exchange

Property exchange - time was ticking
We needed to contact the creditor, discharge the mortgage, remove the expired lease & provide the new title - all within 4 weeks. We were up for the challenge.

Client Story

The client was purchasing an investment property and using the equity in another investment property to guarantee the loan. 

Following exchange (no cool-off period), it was discovered that the investment property (which was being used as equity) already had a mortgage with a previous creditor as well as an outdated lease on title. 

Issue

The settlement period was only four weeks. Within this time, we needed to contact the creditor (who was no longer a registered company), discharge the mortgage, remove the expired lease and provide the new title to the new lender.

What We Did

We made numerous enquiries to locate someone from the creditor who would be able to assist with the discharge of the mortgage. 

A paper Discharge of Mortgage was found. However, such processes now need to be lodged electronically. 

We then liaised with Land Registry Services and argued for an exemption to the electronic lodgment requirements. 

Exemption was granted. 

Finally, we removed the expired lease from title.  

The Outcome

We managed to provide the updated clear title to the new lender four business days before settlement, enabling our client to settle the purchase on the due date, thus allowing them to escape any risk of penalty.

For all your property and settlement concerns, please contact Ryan & Seton Lawyers – our friendly team will be happy to advise you, or take on as much of the process as you need to make it a little less stressful for you.

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