Paying Off Your Current Mortgage
Assuming that you have a mortgage on the property that you are selling, you must pay off the remaining balance on your account. Your mortgage lender will have produced a precise redemption figure for your account up to the day of final completion of your sale and this figure is the amount that you must pay off. Once the buyer, or their mortgage lender, has electronically transferred the purchase price to your solicitor or conveyancer, they will handle the repayment of your mortgage company.
Final Arrangements With Your Solicitor or Conveyancer
Once your property has been sold and final completion has taken place, you will receive a final account from your legal representative which outlines the amount that you owe them. This account will itemise their costs and disbursements, the price that your property sold for as well as the amount paid out to cover your mortgage. If you are both buying a property as well as selling and using the same conveyancer or solicitor, they will settle both transactions in the same account. This will include the payment of stamp duty, if required, on your new property that you have purchased. They will also ensure that the Land Registry has been informed about the changes of ownership of your property.