What Does Solicitor Request Mortgage Funds
When a solicitor requests mortgage funds, it means that they are formally asking the mortgage lender to
release
the funds that have been approved for a property purchase or a remortgage. This is a crucial step in the
property buying process, typically occurring when all the legal and financial arrangements have been
finalized
and the transaction is ready to proceed to completion.
Here’s a breakdown of the process and why a solicitor would request mortgage funds:
- Completion Date Set: Once all legal documents are in place, searches have been
conducted,
and all necessary paperwork is prepared, the solicitor and all parties involved in the property
transaction
agree on a completion date. This is the date when ownership of the property officially transfers from
the
seller to the buyer.
- Mortgage Approval: Before requesting mortgage funds, the buyer’s mortgage
application
needs to be approved by the lender. This involves assessing the buyer’s financial situation, the
property’s value, and other relevant factors. Once approved, the lender commits to providing the
funds
on the completion date.
- Solicitor’s Review: The solicitor reviews all the legal documents, contracts, and
arrangements to ensure that everything is in order for the property transfer to take place. This
includes
verifying the mortgage offer and making sure all legal requirements are met.
- Funds Required: On the completion date, the buyer’s solicitor calculates the
total
amount required to complete the purchase. This includes the purchase price, any applicable taxes (such
as
stamp duty), legal fees, and other costs.
- Request for Funds: The solicitor sends a formal request to the mortgage lender, asking
them
to release the approved mortgage funds on or before the completion date. This request is usually
accompanied
by a completion statement outlining the breakdown of costs and funds required.
- Transfer of Funds: On the completion date, the solicitor ensures that all necessary
funds,
including the mortgage funds, are available. The mortgage funds are transferred to the solicitor’s
account, and they, in turn, distribute the funds to the relevant parties, which often includes the
seller’s solicitor.
- Completion: Once all funds are transferred and the legal formalities are completed,
ownership of the property is transferred to the buyer. The keys are handed over, and the property
officially
changes hands.
It’s important to note that the process may vary slightly depending on the specific legal and financial
procedures in different jurisdictions. The solicitor’s role in requesting mortgage funds is crucial
for
ensuring a smooth and legally sound property transaction, and it’s part of their responsibility to
oversee
the completion process and handle the financial aspects of the purchase.
