Conveyancing is the process that is to be followed when buying or selling properties in the UK. It is a mandatory and a legal process that has been set by law to abided at all times when dealing about a property. Firstly, the process is complex and simple at the same time. For those who are new to the term, it is not a jargon process but a very direct one. Secondly, the people who do conveyancing are known as conveyancing solicitors and they help you get your property conveyanced in very little time. In the previous two articles, we discussed the cost of mortgage conveyancing and how mortgage solicitors take care of it. In the following article, we will be discussing the valuation fee while buying a property with mortgage and taking help from a mortgage solicitor for it.
Mortgage basic idea
The basic idea behind mortgage is as follows. It is a process of buying a property against a loan and conveying to the loan giver as security. Thus, while conveyancing for a property on mortgage, the property itself stays as the security. Moreover, mortgage conveyancing for buying properties is not as complex as it seems. Thanks to the established and competent conveyancing solicitors in the UK like Nigel Broadhead Mynard Solicitors – people are now getting to buy their dream properties quite easily and without a lot of fuss.
There are a few fees related to mortgage conveyancer. In the previous two articles, we discussed the arrangement fee and the booking fee of mortgages. Thus, in this article we will look at the valuation fee of mortgages.
UK’s property market is seeing rise in property prices rapidly. Also, the recent issue of Brexit may affect the property market in the long run. However, that does not mean that you should not go for your desired property. Therefore, irrespective of the locations – buying a property is a must and if it is on mortgage, then there is no need to worry.
Valuation fee of mortgage conveyancing for a mortgage property is the fee that must be paid to the mortgager or the person who is lending you the money to buy the property.
Valuation Fee and details
As mentioned, lenders are to be paid the valuation fee. The valuation fee is the fee that measures how much the property is actually worth. This being the property that you are buying. In fact, the valuation fee is usually different from the fee that you are paying for the property. The buying fee of a property can be higher or lower than the valuation.
The main reason to why mortgagers want the valuation fee to be paid to them is because of security. Therefore, in other words, this also acts as a security money. Economic condition, property valuation, area valuation can all affect the price of a property. Therefore, if there was no valuation fee and after two years or so the property price decreased due to some reason, then the lender will be getting less than what he lent you. In short, it is not profitable for him at all. This is why valuation fee is there. The valuation fee ensures that you will pay the same amount of money after a certain time irrespective of the valuation of the property.
Also, valuation fee ensures that the lender can repossess the property and get a good amount of money for it when they sell it off. The cost of valuation fee and survey is variable from property to property and from one purchase price to the other. Usually, the cost is about three hundred to four hundred pounds.
It is always in the best interest of yourself to get the updated valuation fee from the seller of the property. This is because not all lenders accept an old or outdated valuation fee of a property when lending money. Also, another important thing to be aware is to be sure if your lender accepts the valuation fee that is being presented by the seller. This is because if he does not then you will have to get a new valuation fee for them and it will again cost you money.
Mortgage conveyancing is not so complex as it seems. In the three articles, we looked at three different types of fees of mortgage conveyancing of buying a property on mortgage in the UK. In the next article, we will be focusing on the survey fee of mortgaging when buying a property on mortgage via mortgage conveyancing. For best conveyancing solutions in UK and around – Nigel Broadhead Mynard Conveyancing Solicitors give competitive quotes online and offline.