When buying a residential property the majority of people require a mortgage to assist with the purchase, says Rhiannon Griffin, of Everett Tomlin Lloyd and Pratt solicitors of Newport, Pontypool and Usk.

This can be arranged by making an appointment with a mortgage adviser at your local bank or building society, or alternatively with an independent financial adviser who can help you select a mortgage that is best suited to your circumstances.

Most people will have considered this before putting in an offer on the property, as they will need to know how much they can borrow.

Once you have made your offer and it has been accepted, your first step should be to speak to your financial adviser or lender and submit your application for your mortgage. Before your lender makes your mortgage offer, they will arrange a valuation or survey, and the sooner this is done, the better.

Your lender will make their offer when they are happy with the valuation and the information you have provided about your finances. They will also instruct solicitors to act for them in connection with the loan. The lender needs to be reassured that the property which they are accepting as security for the loan has good and marketable title.

By this stage you will have chosen your own solicitor to handle the conveyancing and very often your lender will be happy for your chosen solicitor to act for them too. The solicitor owes an equal duty of care to both you and your lender. Therefore if during the transaction it comes to light that there is an issue with the title to the property, your solicitor must report it to your lender and wait for their instructions before proceeding.

It is important you check that your solicitor is on your chosen mortgage lender’s panel of approved solicitors as this can prevent additional unnecessary expense. If your solicitor is not on the lenders panel, an additional solicitor will have to be instructed to act for your lender and you will incur two lots of legal fees.

At Everett Tomlin Lloyd & Pratt we are on a large number of panels including all mainstream lenders and we do not charge any additional fees in connection with acting for both you and your lender.

Your solicitor will receive a copy of the mortgage offer directly from your lender, along with all of the necessary documents. Your solicitor will advise you on the effect of the mortgage documentation and should explain all key points.

By signing the mortgage deed you agree to comply with all terms and conditions as set out in the mortgage offer. The mortgage deed must be signed in presence of witness. This is often your solicitor, but it can be a neighbour, friend or work colleague. The witness must be over the age of 18, of sound mind and in no way related or otherwise connected to you.

Once all parties are ready to complete your solicitor will need to send a Certificate of Title to the lender confirming that the property is good security for the loan and giving the date on which funds are required.

Either on the day of completion or the day before your lender will transfer the mortgage money directly to your solicitor’s client account ready for it to be transferred to the seller’s solicitor in order to complete.

After completion your solicitor must ensure that the mortgage is registered against your property at the Land Registry.

If you are selling your property and there is an outstanding mortgage registered against your title, this will need to be discharged before or upon completion as the property needs to be sold free from all encumbrances. It is usually the case that your solicitor also acts for the lender. Your solicitor will need to contact the lender in question to obtain an up to date redemption statement which gives details of the outstanding balance including any fees that need to be paid. You will need to provide your solicitor with your mortgage account number so that they are able to do this.

On the day of completion, when the funds are received from the buyer’s solicitor, your solicitor will send to your lender the amount required to pay off your mortgage. Your lender’s charge against the property will then be removed at the Land Registry so that the new buyers can then be registered as the owners.

Rhiannon Griffin is a trainee solicitor at Everett Tomlin Lloyd and Pratt, specialising in residential and commercial property.