Short video/clip advising owners of unencumbered property to locate their title deeds before applying for loans or using the property as a family-pledge. Speaker (Aaron, Diagnosing of Finance) explains what 'unencumbered' means, typical holders of title deeds (bank, solicitor, at home) and practical pitfalls if deeds are unavailable at contract time.
Do you have an unencumbered property? What do I mean by unencumbered? Unencumbered means that you do not have a home loan attached to that property, whether it's land or a home. It means that you own the title deeds and your title deeds may be locked away with the bank that you previously had the loan with, or they might be locked away with your solicitor or sitting in your drawer at home, God forbid. So when you have an unencumbered property and you want to then do some renovations, or you want to do a family pledge style loan to help your son or daughter get into their next home, there's a couple of pitfalls with this. So let's skip over the whole loan application for a minute and let's say everything gets approved really, really quickly and we're under a purchase of a new home for the son or daughter. And then the bank goes, we need those title deeds. So where are your title deeds? Using a broker can help you find these title deeds a lot quicker than usual. But typically the bank won't require them until your loan is approved and the loan contracts are signed, ready to go. So if they're stuck with a bank and you need to run around right at the last minute before you go into default on a contract of sale, it's really good to find these up front. Where are they? Are they with a solicitor? Are they with a bank? Are they with a bank that we're going to, which could be nice and easy for us to deal with? Or, or are they with in your drawers at home title deeds? You need to keep them safe. Having them in a drawer at home may not be the best thing. Having them in a safe of your current solicitor or even by default. If you've had a loan on your property before and you've paid it off, just keep the loan deeds with the bank. You'll be able to request them at any time. It does take a few days to get them out, but they can be safe anyway. It's Aaron from Diagnosing of Finance. Where are your title deeds?
