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Property Encumbrances, in strict terms are a form of hindrance or burden, and in law an encumbrance is a lien, mortgage or other financial claim on a property by another party.
Here we explain and define Property Encumbrances, charges and liens and why they are registered against property, and take a look at the Solicitors role in ensuring the property you purchase is "free from encumbrances".
Table of Contents:
Encumbrance is one of those strange and peculiar words that you will often find used in property transactions.
So what are Encumbrances exactly? Well, the definition of encumbrance is some form of hindrance or burden, and in law, an encumbrance is a lien, mortgage or other financial claim on a property by another party. An encumbrance will invariably affect the transferability of the property.
One of the main functions demanded of your Solicitor, or legal representative during the conveyancing procedures of the house buying process, is to ensure that you, as the purchaser will obtain the property "free from encumbrances".
How will he do that?
Well, he will make the appropriate searches at the Land Registry, and by doing so, the details of any charges or liens will be revealed.
The charges or liens exist to protect the interests of someone having a financial interest in the property, for example:
Any charges or liens on the property will of course need to be cleared before the solicitor will permit you to proceed towards the completion of the purchase. So unless and until these have been cleared, and the seller's solicitors have confirmed these charges or liens have been settled, you will not be in a position to acquire the property "free from encumbrances".
So, if you are looking at purchasing a house and require a mortgage, why not give one of our professionally qualified mortgage advisors a call. We will quickly assess your circumstances, and explore all the options that may be available to you. A rapid in-principle decision will follow.
We can usually help even in the trickiest of circumstances, and will be happy to talk through your needs and requirements and examine the avenues that may be open to you. It may be that you are self-employed without accounts, or have an adverse credit history.
So, whatever your requirements and needs are, we are here to help, so why not call us today on Freephone 08000 282 281 (our lines are open from 8am until 10pm including weekends), or alternatively enquire online at any time.
Hopefully we've managed to provide you with a better understanding of what property encumbrances are and the solicitors role in ensuring a property being purchased is "free from encumbrances". Remember, we're only ever a free telephone call or few mouse clicks away if you feel we can be of help!
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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.
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