Mortgage Process Change To Impact on Property and Conveyancing Transactions
The application process for some lending on land and property in Scotland will change from 1 April 2016 as a new trigger to support the completion of the Land Register of Scotland is activated.
The historic deeds-based General Register of Sasines will close to standard securities on April 1 and, as a result, applicants planning to use a new lender to re-mortgage or take out additional lending secured on their existing Scottish property may need to prepare a voluntary registration application to move a title onto the land register
The change is expected to affect a small percentage of people seeking lending against their property, with historically around four to five thousand applicants who still have property on the Sasine Register taking out a new security with new lenders each year.
If a property’s title needs to be moved from the Sasine Register onto the Land Register, the customer will still pay the same fee of £60 to register the standard security.
The normal registration fee to move onto the Land Register will be waived. The property may also require a plan to be drawn to meet the requirements of the Land Register and this cost will be dependent on the complexity of individual map requirements.
The change will not affect those wishing to re-mortgage with an existing lender, as monies are rolled into the same account, with no need to check title deeds. Nor will it affect customers purchasing a mortgage on a new property, as the title, if still held on the Sasine Register, will be moved onto the Land Register under existing triggers.
To coincide with the legislation change, Registers of Scotland (RoS) has been working with national umbrella groups such as the Association of Mortgage Intermediaries and Council for Mortgage Lenders as well as the UK’s major lenders, conveyancing solicitors and mortgage brokers to tell them about this new legislation and how it may affect some customers.View all →