An explanation of a Legal Charge or Legal Mortgage, and available assistance
The Legal Charge (or Legal Mortgage) is a legal document that registers a mortgage lender's interest over a property.
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Here we explain more about Legal Charges and HM Land Registry and the role these have with mortgage lenders and repossession, and how we may be able to help if you are threatened with repossession by a mortgage lender.
Table of Contents:
What is a Legal Charge?
As we detailed in the introduction, the Legal Charge (or Legal Mortgage as it is also known as), serves to act as the legal document that registers the mortgage lender's interest over a property.
Legal Charges and HM Land Registry
The mortgage lender's interest is registered at HM Land Registry, along with the registered interest of other parties, for example the interests of other lenders having a charge registered against the property.
All the charges pertaining to a property are recorded on the Charge Certificate, which is managed by HM Land Registry.
Repossession and Legal Charges
In the event of a serious default by the borrowers, and a subsequent house repossession, a Land Registry search will confirm the rankings of those parties having a Legal Charge against the property. Thus for example, the original mortgage lender will be paid from the proceeds of the sale first.
If there are funds left over, then the other charge holders will then be repaid, and these will usually rank in order of the date they were registered.
There are various forms of legal charges, including full legal mortgages, and equitable charges. Mortgage lenders will invariably include the right to repossess your property in the event you do not meet the mortgage terms, most especially meeting your contractual repayments.
Equitable charges are generally registered in the event you have failed to meet your contractual obligations on an unsecured transaction, and will usually only rank ahead of other unsecured debts.
Can Shire Direct help if I am threatened with repossession by a lender?
In most cases thankfully the answer is yes!
If you have been advised of potential repossession proceedings, then it's very important that you must act fast. Naturally, we would be delighted to help you through these very precarious times. Here at Shire Direct, we are geared to provide you with a carefully considered solution to your problems in a sympathetic and helpful way. So, if you are interested in checking out the options that may be available to you, then please call one of our professionally qualified mortgage specialists or contact us online. Your circumstances, needs and aspirations will be carefully assessed and we will come up with just the right product for you!
Hopefully we've managed to address and answer your legal charge / legal mortgage questions and the role they play with regards to mortgage lenders and repossession. So remember, if you do have difficult or unusual circumstances, our product portfolios are crammed with a very wide range of mortgage products to offer. So, please don't hesitate to contact us if you think this facility would help you. Our Freephone line - 08000 282 281 is open from 8am until 10pm at night, including weekends, or enquire online anytime which is quick and easy, and we'll be delighted to provide you with an in-principle decision - whatever your circumstances!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
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