Selling a Property – what is a Redemption Figure?
When selling a property, you will need to provide your solicitor with the details of the mortgage on the property you are selling (mortgage lender’s name and account number). This is because your solicitor will require a redemption figure from your mortgage lender.
- A redemption figure is the amount it costs to pay back your mortgage early. It consists of the final figure for settling your old loan or mortgage with your mortgage lender and sometimes an ‘early payback’ charge and all interest up until a certain date. This penalty charge compensates your mortgage lender for the interest they will lose out on from your loan not running its full term.
- Requesting an initial redemption statement will have no impact on your mortgage account. The redemption figure will be provided to your solicitor who will arrange to clear it.
- Once a completion date has been decided, your solicitor will then request a ‘final redemption statement’ for this date as this will be the date you are expected to repay the mortgage. This final statement will confirm the exact amount, all applicables fees and interests and instructions for your solicitor to fully repay the mortgage with the sale proceeds.
If you would like Ringrose Law to act on your behalf for your conveyancing, please contact a member of the award winning Conveyancing team at Ringrose Law. We have offices in Lincoln, Boston, Grantham, Sleaford and Newark.