Repaying your Mortgage

Steps to take when you Repay your Mortgage

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Overview

We receive numerous queries from people who have repaid their mortgage and wish to know what, if any, steps they need to take next. This article addresses that question.

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Redemption

Paying off your mortgage is known as the mortgage redemption. Sometimes the mortgage is repaid as a series of lump sum payments, and sometimes it is just the final payment on a 25 year mortgage. The steps to follow are the same in each instance.

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Letter from Mortgagee

Following your final payment you should receive a letter from your mortgagee to confirm that your mortgage has now been repaid in full. If the property is unregistered, the Deeds to the property will be included with the letter. If it is registered the mortgagee will no have any Deeds. Your ownership will be shown on the documents held by the Land Registry, and you can obtain copies of these any time you wish, on payment of a small fee.

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Unregistered Properties

Where your property is unregistered you should ensure that your Deeds are kept somewhere safe, e.g. stored with a solicitor or bank. However, we receive a substantial number of queries from people who have mislaid or lost their Deeds. Solicitors may go out of business, storage facilities may suffer a fire, or you may forget who has the Deeds. These days it is much safer for yourself and your family to register your property at the Land Registry.

With unregistered properties the process is complex and you should take your Deeds to a solicitor and ask him to apply for voluntary First Registration. Should anything then happen to you, your family can obtain a copy of the registered documents within an hour.

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Registered Properties

If your property is registered the mortgagee will tell you so, instead of sending you the Deeds.

You should obtain a copy of the registered ownership documents. For a freehold property these are:

• Title Register
• Title Plan

For a leasehold property they are:

• Title Register
• Title Plan
• Lease

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Check that your Mortgage is No Longer Showing

It is important to obtain a copy of your registered ownership documents, which you can keep somewhere safe in your home.

It is important that you check straight away that your mortgage is no longer showing. While the mortgage is subsisting it will be shown in the C section of the Title Register. The mortgagee will normally remove this entry itself following redemption, but not all mortgagees do so. When you check the Register the reference to the mortgage should no longer be shown.

If the mortgage is still showing you should contact your mortgagee straight away.

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Check that your Ownership Details are Correct

Many government departments and other institutions check your ownership details so it is very important to check them for accuracy and ensure they are kept up to date. A common problem is the failure to record the full names of the owners (including all Christian names). Another common problem is caused by names which are mis-spelt. Check these details carefully and also that your address is correctly shown. Even the smallest of errors can cause problems when dealing with government departments.

Errors can easily and quickly be rectified by completing the government’s online forms. Mis-spelt or missing Christian names can be corrected using Land Registry forms ID1 and AP1. Incorrect contact addresses can be corrected using Land Registry form COG1.

If you are making changes to amend your contact details you should take the opportunity to add further contact addresses as a precaution against property fraud. You are allowed to register up to 3 contact addresses for each owner. They should include your postal address and may also include an email address or an address Abroad. The Land Registry, if they need to contact you, will do so at each of your registered contact addresses.

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