Article Score0

I am about to sell my house, I am in a pretty desperate situation so cannot hold out for much longer financially. I have a buyer who wants to exchange within the next couple of weeks (none negotiable – can’t lose this sale) . My problem is that I am tied to a mortgage which has an early redemption clause (this runs out in February 08). The early redemption fee is £5000, which is a considerable sum and one I cannot afford to lose. My question is, my house sale will go through in a couple of weeks, can I continue paying the mortgage once the house is sold until the early redemption date passes (only a matter of weeks after the sale goes through), or am I obliged to pay off the mortgage straight away once the sale has taken place. I have never been in this situation before (and hope never to be again) I am at the end of my tether and would appreciate any advice you can offer. I will be left with virtually nothing once the sale goes through, so the £5000 would help considerably

3 Thoughts on Can I continue paying my mortgage for a month after sale of house so as not to repay early redemption fee?
  1. Reply
    Kass
    October 26, 2011 at 3:21 am

    Hate to tell you to call a lawyer, but you need one. Maybe something they can think of.

  2. Reply
    ananamas
    October 26, 2011 at 3:22 am

    I am answering from the US, and although I am not familiar with property law in the UK, I assume it’s similar since our system of law is based on yours. In the US the answer would be NO, you could not – the purchaser needs to receive “clear title” at closing, and if your mortgage is still outstanding they will not have “clear title”. In other words, the bank holding your mortgage must give-up their mortgage so that the buyer wouldn’t be responsible for it, and the bank will not do so unless they receive payment in full of the amount owed.

    So, I don’t think it will work. Your choices would be sell early and take the hit, or don’t sell early and don’t. Which one will result in you losing less money? That’s the one to take.

  3. Reply
    mister ed
    October 26, 2011 at 4:12 am

    sorry but you can not do it!!!

    Leave a reply

    Register New Account
    Reset Password