Moving a loan onto the new property ?
‘gotcha’ near the end of a transaction. When people take out loans that are fixed onto their property (a mortgage) they are sometimes told by the people selling them the mortgage that if they sell it can be moved onto the new property without any problem. They then assume that this is not something they need to let their solicitor know about. At the last minute the loan comes to light and needs to be sorted out in a hurry. the basic position is this – if you’ve got a mortgage on your property then it MUST be paid off at the time the property is sold. If the lender says they will ‘transfer’ it onto the new property that is fine but what actually happens is not a transfer at all – the old loan is paid off and a new loan is granted, registered against the new property. Unfortunately we have experienced cases where people have been told by a salesman at the time they took the loan out that ‘ this is no big deal – it can be easily transferred’ – then when it comes down to it the loan compan
