HSBC and it’s sister bank First Direct are asking solicitors to send them the Certificate of Title by 21 June if they want to complete by the end of the month, according to HBB Solutions, a property buying firm. It contacted the largest mortgage lenders to find out their deadlines for the release of funds.
A Certificate of Title is issued by a solicitor when all the legal work is complete and triggers the release of mortgage finance from the lender.
Leeds Building Society, Halifax and Barclays have said the cut off date for receiving the Certificate of Title is 23 June while Precise Mortgages has given a date of 25 June.
Nationwide/The Mortgage Works has provided no deadline, said HBB, but it has said it needs five working days to send mortgage funds by BACS and if the notice is less, the lender will deduct £20 for the CHAPS payment.
Homebuyers are eligible for saving of up to £15,000 on their stamp duty tax bill if they complete their purchase by 30 June. After that the temporary stamp duty threshold, the point at which buyers start to pay stamp duty, will be lowered from £500,000 to £250,000 until the end of September.
It’s estimated that more than 160,000 buyers who agreed sales before 1 April will not complete by 30 June according to property data firm TwentyCi.