Selling a Property – what is a Redemption Figure?
When selling a property, you will need to provide your Conveyancing Solicitor with the details of any mortgage on the property you are selling (mortgage lender’s name and account number). This includes your main mortgage and details of any subsequent borrowing.
This is because your solicitor will need to obtain a settlement figure in order to pay off the debt when your sale completes. This settlement figure is known as a Redemption Figure. This is a phrase you will hear throughout your transaction.
A Redemption Figure is the amount it costs to pay back your mortgage on a specific date. It consists of the final figure for settling your old loan or mortgage with your and can sometimes include an “early redemption charge” as well as all interest up until a certain date.
Your Conveyancing Solicitor will usually send you a copy of the Redemption Figure provided by your lender.
The Early Redemption Charge is usually only applicable if you repay during any benefit period or fixed rate period and details would have been set out in your original Mortgage Offer. Sometimes this Charge can be avoided if you are remaining with the same lender and meet all of their criteria however your Financial Advisor will investigate that for you..
We can help
For more help and advice please contact our Conveyancing Team at Ringrose Law Solicitors. 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.
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