Mortgage redemption paid into court?

[spot]

I have a 1st Mtg with a high st bank which I have ended up having to redeem by selling my house as they have a repossession order obtained which I have good reason to dispute and have done so for some time without conclusion.

 

I have a 2nd charge loan with a dubious 2nd charge lender which also obtained a repossession order and eviction order which I managed to stop due to paying the arrears off, but I also have considerable issues of dispute over.

 

That said, I have now sold my house and due to exchange contracts and complete and by so doing will obviously have to pay both in full to get the title released for the buyer.

 

What would be the situation if I asked my solicitor to pay both companies full balances demanded including any disputed amounts (I have ample equity to do so and buy myself a new home) into court rather than to the companies direct using the Claim numbers of their repossession Claims thereby satisfying the balances required to settle these in full to release title deeds, but putting them on notice they are going to have to satisfy the court that these full sums are warranted?

 

Would it hold up the completion of the sale and would anyone know what complications I might incur by doing so?

[steampowered]

Unfortunately that would not work. A reposession order only gives repossession, it does not discharge the underlying debt which is what is secured by the mortgage. If the money was paid into court that would not give the buyer good title because it would not remove the entry on your house's charges register, nor would your solicitor be able to comply with his professional obligations.

 

Realistically, you would need to get a court order declaring the amounts necessary to discharge each mortgage. No doubt this would require a contested hearing and would certainly take time. If you don't want to delay completion then you will have to pay the mortgage and sue the banks for anything you think is an overpayment later.