Mortgage Top-up and Solicitor Requirement

polikou

Hi,

I have recently applied for and received full approval for an equity release on my mortgage in order to build an extension. My mortgage is with BOI, as will my top up. The title deeds are also with BOI. They are stating that I will need a solicitor for the draw down process. I have asked the bank for info on the questions below, but so far their answers haven't given any clarity!

Firstly, is a solicitor actually required when there is no change to the title deeds?

What scope of works would a solicitor be required to do?

Is it reasonable for me to request that the drawdown of funds is made directly to my account? (considering I am an existing customer and if I use their in-house solicitor, the money will flow direct from BOI to me)

I know directly of two people who have gone through similar processes in the last four years with different banks and have not needed solicitors.

Thanks for your help.

phormium

The product called Top Ups usually with many banks are a simpler form of a loan attached to the main mortgage and normally don't carry legal fees and are paid straight to customer but they have a limit, used to be around 65k for UB anyway. If yours is an additional mortgage which is a slightly different product and what needs to be done for larger than the banks limit for top ups then it is same as brand new mortgage and will require solicitor and funds will be released to them.

Now I don't know exactly what the solicitor does but this is the way it has always been, Top Ups were designed to be a quick release of a small amount extra to the mortgage, larger amounts need to go the full mortgage route.

polikou

Thanks for the reply phormium. The bank have referred to it as a top up, equity release and new mortgage application! The amount is below the 65k you mentioned, but I can't find any info on current bank limits.

It's quite frustrating to have to pay money for a service, when nobody can tell you what work is actually done!

phormium

The 65k limit might be irrevalent depending on what the work being done is too, it doesn't always apply so it is possible smaller amounts would require a new full mortgage application too. The name of the product is neither here nor there really, all are just new loans no matter what name they stick on the brochure depending on the offering of the particular product and it's all of those things really. The only main difference is there must be some reason why it isn't falling under the simpler process, ask the bank have they another process for 'top ups' , maybe that bank doesn't actually have an alternative to a full new mortgage process?

As to not knowing what the solicitor does then I doubt the person in the bank knows, I worked in a bank for years and to be honest I'm not sure what the specific work the solicitor does other than to guarantee the proper legal work is done to ensure the mortgage is correctly set up, I I have a rough idea of some of the bits but don't know the exact details of all it entails and nor do I need to, and I imagine the solictor doesn't know exactly what the morgtgage advisor does either! They each look after their own side.