# What is a cross charge?



## MachuPicchu

I have a 100% mortgage on an investment property that I closed on recently. To get 100% I had to have a 25% cross charge on a mortgage-free property I own. To my surprise I am now been charged significant addtional legal fees for the creation of this cross charge e.g. searches, miscellaneous, land registry, professional fees etc. Is a cross charge the same as a mortgage? Does a cross-charge normally cost a lot?


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## Cantona7

Hi
I had the same situation earlier this year.. unfortunately the costs do mount up as its akin to raising a second mortgage and with it comes the various fees as you list. I didnt realise at the time that it would cost as much either! Suffice to say, i wouldnt be repeating this particular way of covering borrowings!


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## Vanilla

Yes a cross charge is a legal charge just like a mortgage is and you have to pay seperate fees and outlay for this.


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## delgirl

MachuPicchu said:
			
		

> I have a 100% mortgage on an investment property that I closed on recently. To get 100% I had to have a 25% cross charge on a mortgage-free property I own. To my surprise I am now been charged significant addtional legal fees for the creation of this cross charge e.g. searches, miscellaneous, land registry, professional fees etc. Is a cross charge the same as a mortgage? Does a cross-charge normally cost a lot?


Yes, it costs quite a bit as the bank insists on having a full marketable title for which searches etc. have to be carried out.

Keep an eye on the value of the new investment property, we had a cross charge on property 1, which we owned outright, but only for 9 months until the value of the property 2 rose.  The bank then requires a new valuation from a nominated agent in that area to release the cross charge.  It again has to go through your solicitor, so there is another fee.


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