Changing mortgage guarantor (solicitors)

Soggycrisps

Hi,

Does anyone have experience with changing guarantors on a mortgage?

In this case the original guarantor would like to be removed and another guarantor will take over. The guarantor is not on the property deeds and nothing else about the mortgage or deeds is being changed.

The bank insists that the mortgage holder and new guarantor need to engage with separate solicitors. Is this really necessary? The only thing that will change is the name of the guarantor...

In addition the new guarantor is not in the country and apparently the documents can not be signed and sent by post.

Does anyone know if this is a normal procedure?
Was hoping we could just sign some paperwork and move on...

Thanks!

Marcusm

Law Soc rules may require this but in any event common sense should require that any person taking on such a burden should be appropriately advised and have their interests represented. The fact that the proposed new guarantor is overseas woud seal it for me as otherwise there is little to ensure bona rides. Frankly,I'm surprised that any bank woud accepta non resident guarantor.

Pro Hoc Vice

Soggycrisps wrote: »

Hi,

Does anyone have experience with changing guarantors on a mortgage?

In this case the original guarantor would like to be removed and another guarantor will take over. The guarantor is not on the property deeds and nothing else about the mortgage or deeds is being changed.

The bank insists that the mortgage holder and new guarantor need to engage with separate solicitors. Is this really necessary? The only thing that will change is the name of the guarantor...

In addition the new guarantor is not in the country and apparently the documents can not be signed and sent by post.

Does anyone know if this is a normal procedure?
Was hoping we could just sign some paperwork and move on...

Thanks!

So let me get this straight you don't think a person who is going to take over another persons obligation to pay thousands of euro on behalf of a third party should have independent advice of a qualified legal professional different from the lender or the original guarantor. Of course they need independent legal advice to protect their interest as well as the lenders interest.

Soggycrisps

Yes, if the contract hasn't changed why get multiple legal people involved...
Anyway I take your point. Thanks for your reply.

Pro Hoc Vice

Soggycrisps wrote: »

Yes, if the contract hasn't changed why get multiple legal people involved...
Anyway I take your point. Thanks for your reply.

But the parties to the contract has changed, and the new person should in my opinion get independant advice as to the obligation they are taking on, that shoud be independant to the lender, the person who has the loan and the original person who guaranteed the loan.

camphor

Soggycrisps wrote: »

Yes, if the contract hasn't changed why get multiple legal people involved...
Anyway I take your point. Thanks for your reply.

Look at the many commercial court cases about guarantees. many cases are defended by guarantors saying that hey didn't know what they were getting into, they had no independent legal advice etc. there are also the requirements of the Consumer Credit Act.
For all the bank know the change in guarantor is because the first one anticipates a default in payments and wants out. The bank doesn't want to be stuck with a useless guarantee in the event of default.