Podcast
Questions and Answers
Which of the following is a necessary step for a legal mortgage to be created?
Which of the following is a necessary step for a legal mortgage to be created?
- A priority search must be performed before completion to prevent new charges.
- The mortgage must be executed by deed. (correct)
- The mortgage must be registered with Companies House within 21 days of completion if the buyer is a company.
- The buyer's solicitor must submit a Certificate of Title (CoT) to the lender.
What is the main purpose of a Certificate of Title (CoT) in the context of a mortgage?
What is the main purpose of a Certificate of Title (CoT) in the context of a mortgage?
- To certify that the property is free from any known liens or encumbrances. (correct)
- To ensure that the mortgage is registered with HMLR within the required timeframe.
- To confirm the buyer's identity and financial capacity.
- To establish the legal basis for the priority search before completion.
When does a mortgage against the property become legally binding and perfected against third parties?
When does a mortgage against the property become legally binding and perfected against third parties?
- Once a priority search is completed before completion of the purchase.
- When the mortgage is registered with HMLR after completion of the purchase. (correct)
- When the lender releases the mortgage funds to the buyer's solicitor.
- Upon the exchange of contracts between the buyer and seller.
What is the purpose of performing a priority search before completion?
What is the purpose of performing a priority search before completion?
If the buyer is a company, what is the timeframe for registering the mortgage at Companies House after completion?
If the buyer is a company, what is the timeframe for registering the mortgage at Companies House after completion?
Which mortgage type involves a lender, solicitor, and life insurance or pension policy?
Which mortgage type involves a lender, solicitor, and life insurance or pension policy?
Which of the following is NOT considered an anti-fraud provision outlined in the UK Finance Mortgage Lender's Handbook?
Which of the following is NOT considered an anti-fraud provision outlined in the UK Finance Mortgage Lender's Handbook?
In the context of the UK Finance Mortgage Lender's Handbook, what is meant by "Standardized Instructions and Variations"?
In the context of the UK Finance Mortgage Lender's Handbook, what is meant by "Standardized Instructions and Variations"?
What role does the buyer's solicitor play when representing the lender in a mortgage transaction?
What role does the buyer's solicitor play when representing the lender in a mortgage transaction?
Which of the following statements accurately describes the purpose of a Sharia-Compliant Mortgage?
Which of the following statements accurately describes the purpose of a Sharia-Compliant Mortgage?
Flashcards
Mortgage Deed
Mortgage Deed
A legal document required to create a mortgage.
Certificate of Title (CoT)
Certificate of Title (CoT)
A document the buyer's solicitor submits to the lender. It confirms the title to the property is valid and marketable.
Mortgage Completion and Perfection
Mortgage Completion and Perfection
The moment a mortgage becomes legally binding and enforceable against third parties. This happens after the property purchase is complete and the mortgage is registered.
Priority Search
Priority Search
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Exchange of Contracts
Exchange of Contracts
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Repayment Mortgage
Repayment Mortgage
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Interest-Only Mortgage
Interest-Only Mortgage
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Endowment or Pension Mortgage
Endowment or Pension Mortgage
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Sharia-Compliant Mortgage
Sharia-Compliant Mortgage
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UK Finance Mortgage Lender's Handbook
UK Finance Mortgage Lender's Handbook
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Study Notes
Mortgage Completion
- A mortgage must be created by deed
- The buyer's solicitor submits a Certificate of Title (CoT) to the lender, confirming the property's quality.
- The CoT acts as a request for the release of the mortgage advance.
- A mortgage can't be completed until the property is registered with the Land Registry.
- A search with priority may be performed to prevent any new charges from being registered impacting the buyer's or the mortgagee's rights.
- If the land is registered, an OS1 (search against the whole of the property, priority) or OS2 (search against part of the property) search at the Land Registry will be performed.
- A 30-working day period is required to complete registration of the mortgage after the initial registration of the land.
- If the mortgage completion triggers first registration of land, the buyer's solicitor has 2 months to complete registration.
- If the buyer is a company, the mortgage must be registered within 21 days of completion.
Exchange of Contracts
- Once the buyer and seller are happy with the results of pre-contract searches and enquiries, they exchange contracts.
- The exchange of contracts is the point in the conveyancing transaction when the matter becomes legally binding on the seller and buyer (they can no longer back out).
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