Hi,
I would appreciate if someone could please explain what the following paragraph means on an investment mortgage, loan offer letter from 2006, under the heading Special Conditions.
"The lenders security shall comprise (a) a first legal mortgage or charge over the property described (Property 2) and (b) if the existing mortgage or charge secures present and future advances, the existing first legal mortgage or charge over the property (Property 1) must be stamped up to cover the aggregate of the Borrower's borrowings, Or if the existing mortgage or charge secures a fixed sum only or if the existing mortgage or charge is a collateral mortgage or charge, a second or further legal mortgage or charge over Property 1 must be put in place."
Background: BTLs
Property 1 bought 2002.. Mortgage now paid in full
Property 2 bought 2006 .. 70% Mortgage paid. All payments (incl capital) are fully up to date.
Basically my question is... is there a charge on Property 1 at this stage because of its link in the special conditions of Property 2's loan offer? Or was there ever a charge actually on it?
Many thanks
** Please move if posted in wrong forum.
I would appreciate if someone could please explain what the following paragraph means on an investment mortgage, loan offer letter from 2006, under the heading Special Conditions.
"The lenders security shall comprise (a) a first legal mortgage or charge over the property described (Property 2) and (b) if the existing mortgage or charge secures present and future advances, the existing first legal mortgage or charge over the property (Property 1) must be stamped up to cover the aggregate of the Borrower's borrowings, Or if the existing mortgage or charge secures a fixed sum only or if the existing mortgage or charge is a collateral mortgage or charge, a second or further legal mortgage or charge over Property 1 must be put in place."
Background: BTLs
Property 1 bought 2002.. Mortgage now paid in full
Property 2 bought 2006 .. 70% Mortgage paid. All payments (incl capital) are fully up to date.
Basically my question is... is there a charge on Property 1 at this stage because of its link in the special conditions of Property 2's loan offer? Or was there ever a charge actually on it?
Many thanks
** Please move if posted in wrong forum.