You never really think about repaying your mortgage when you first take it out. However, over time and a number of potential house moves later, the time finally comes when you have repaid your mortgage. But what happens next?

A mortgage is a charge over your property

In Scotland, when you take out a mortgage, you must grant a Standard Security in favour of the lender. The Standard Security forms a charge over the property. It is registered in the Land Register of Scotland in the securities section. When you sell your house or when you repay your mortgage, the Standard Security must be discharged.

It is also important to note that the Standard Security protects your lender should you default on the terms or your mortgage or fall into arrears. Should that happen, the lender can use the powers contained in the Standard Security to call up your mortgage, evict you and then sell the house.

What happens when you have repaid your mortgage?

Once you repay your mortgage, your lender will contact you. They will tell you that you no longer owe them any money and ask you to arrange to have the Standard Security discharged. If you do not arrange to have the Standard Security discharged, it will remain as a charge affecting your property.

How do I have the Standard Security discharged?

You should consult your solicitor, provide a copy of the letter from your lender and ask them to draw up the Discharge.

Your solicitor will prepare the Discharge and send it to the lender for execution. Normally, the lender will ask for a fee for executing the Discharge. This can range from £20 to over £250!

Once the lender has returned the executed Discharge to your solicitor, your solicitor will send it to the Registers of Scotland. Once registered, the Discharge removes the Standard Security registered over your property. This means there is no longer a charge over your house.

Your solicitor will charge a fee for the work involved. They will also collect the execution fee demanded by your lender and the registration dues of the Discharge.

Specialist Property Solicitors in North Berwick and Dunbar, East Lothian

Our solicitors specialise in all aspects of property law in North Berwick and Dunbar, throughout East Lothian and across Scotland. If you have repaid your mortgage and would like to discharge the Standard Security held by your lender over your property, please get in touch with us today.