Mortgage top up - are solicitor and valuation required

[Ceist Beag]

We recently got approval from AIB for a top up no our mortgage. Just looking at the requirements for accepting this offer it states that a valuation is required and that we need to supply contact details for our solicitor. I can understand the valuation requirement (although if anyone managed to get out of having to supply this I'd be interested to hear!) but why is a solicitor required? Can we proceed without getting a solicitor involved?

 

[DrMoriarty]

We topped up our (NIB) mortgage a while back and they were happy enough with the valuation carried out nearly two years previously. Not sure about the requirement for a solicitor...?

 

[Eeek!!!!]

I'm currently considering a top-up, consulted NIB who said the solicitor is required to witness the signing of the documents. They didn't mention anything about a valuation though and estimated the cost of the solicitor at €40-€50.

 

[miket]

Re top-up and solicitor I had specifically been told by a helpful bank official that it could be taken out as a separate loan - "so as to avoid a solicitor" - whilst still being considered a top up. I have yet to check this out with my lending bank and in any case the top up involved was very small.

 

[mf1]

I think the different institutions have different requirements. Some will do it internally - some externally i.e. with a solicitor involved. All will require a Family Law Declaration to be completed - even if done internally.

I think that ptsb do often require not only a top up but also an entirely new charge/ mortgage to be created.

I think that the lending institutions can be entirely disingenuous also with their customers i.e. oh, even if you need a solicitor, it will only be 40/50 euro!!! Thats fine if I'm just being asked to have a client swear a Family Law Declaration but not if I'm being sent a full set of mortgage documentation, a list of special conditions and I have to take up Deeds as well.

Ask the question of the lending institution - what is involved here? Why do I need a solicitor?

mf

 

[Redzer]

How much of a top up is it and how much equity is remaining in the property afterwards?

I took €20k equity release in Jan to finance a new car and a solicitor or valuer were not required. We had bought the house over 2 years previously and the mortgage was about 50% of the house value so the risk to the bank on the valuation was minimal. They did not insist that we engage a solicitor but recommended we obtain independent legal advice, etc. They arranged for the stamping and registration of the mortgage and there was a security perfection charge of €222 payable by me for that. However I did have to take out an additional mortgage protection policy which cost €60 for the year. (p.s. am in the process of selling house now and clearing this anyway)

 

[Ceist Beag]

Thanks for the replies folks. The top up is for €50k which brings the mortgage to roughly 75% of the house value. I can understand the requirement for the valuation but just wanted to see if others needed to use a solicitor before ringing them up to question it.

 

[Molly]

if is is a mortgage top up and secured on your property then the new borrowing must be registered on the deeds of the property therefore a solicitor is required.

some lenders process this through their own legal dept, or will cover the cost of it, AIB must not offer either option.

I had specifically been told by a helpful bank official that it could be taken out as a separate loan - "so as to avoid a solicitor" - whilst still being considered a top up.

I suspect this is in fact an unsecured loan and a higher interest rate would apply.

As for a valuation, again it depends on the lenders, most will ask for a "drive By" whereby a local valuer gives an opinion of its current market value without carrying out a full valuation, and this can cost around €45. Not sure why AIB want a full valuation unless your property has significantly increased in value and the need evidence of this t support the increased mortgage amount.