Paying off your mortgage can be a very exciting time, and it will likely be a cause for celebration. However, it is important that you formally discharge the security from your Title Deed.
When you buy a property with a mortgage in Scotland, your lender will want to protect their interest in the property by adding a charge onto your title to the property. This is so you can’t then sell on your property without paying back your loan! They do this through a deed called a Standard Security which is a document in favour of your lender that you will sign prior to the settlement of your purchase. By signing the deed, you give your lender a personal undertaking that you will pay back the loan as per the conditions of their mortgage offer. This is then registered in the Land Register, and will appear on your Title Sheet.
Once you have repaid your mortgage, the Standard Security does not automatically disappear – it remains on your title until you formally discharge it. This is where a solicitor comes in to handle the mortgage discharge process in Scotland for you.
We have put together some useful information below, to guide you through the process of discharging your Standard Security.
What is involved in the discharge process?
Discharging your Standard Security can be a relatively straightforward process. The most practicable time to go through the discharge process is when you receive the letter from your lender, as mortgage details could potentially go missing or be forgotten the longer you hold off – which can lead to the process becoming more time-consuming and complex!
It will also be necessary to discharge the standard security if you are intending on selling your property or transferring title. However, this can be done at the same time as the sale or transfer is carried out.
Once you receive a letter from your lender confirming that your Standard Security has been paid off, contact one of the solicitors in our Residential Conveyancing team who will take the relevant details regarding your mortgage, and prepare the necessary documents. We will need to see a copy of the letter from your lender (which will contain most, if not all, of the information required), as well as the Title Deeds for the property. If you do not hold these, it is sometimes the case that the bank will hold them when the mortgage is taken out, or the solicitor who dealt with the purchase may hold them. If that is the case, we can help you track them down.
What happens after you instruct a solicitor?
Depending on your mortgage provider and whether your property is in the Land Register or in the older Sasines Register, there are two different processes which may be required.
- The Digital Discharge Process – this process can be used if the Title to your property is registered in the Land Register and your lender takes part in the Digital Discharge Service. We will submit the digital discharge to your mortgage provider online. The new Title Sheet is usually returned in a couple of weeks, which will be updated to delete any reference of the Standard Security. The Registers of Scotland charge a registration fee of £60 for this.
- The Paper Discharge Process – this process is used if your property is not in the new Land Register, or if your lender does not take part in the Digital Discharge Service. We will prepare a Discharge document which is sent to your lender for their signature and return. Once received, it is then sent to the Registers of Scotland for registration. If your property is on the Land Register, you will receive an updated Title Sheet, clear of your security. If your property is registered in the Sasines Register, you will receive a stamped deed confirming that your Stander Security has been discharged. The length of this process is very much dependent on how quickly your lender returns the signed Discharge Deed. Once uploaded to the Registers of Scotland, however, the registration typically takes a couple of weeks. The Registers of Scotland charge a registration fee of £80 for this.
In addition to the Registers of Scotland fees, there will be a solicitor’s charge for carrying out the work involved. Please contact us if you would like a quotation.
Once we have received the updated Title Sheet, or the stamped deed if the property is registered on the Sasines Register, we will forward this on to you for your records. It really is a simple process!
What to consider next?
Paying off your mortgage is a milestone – congratulations! Have you also reviewed or considered updating your Will? Particularly as your home is often your most valuable asset. Our experienced Wills, Trusts & Estates team at TC Young will be able to make the process of creating a Will as straightforward as possible.
Get Expert Help with Your Mortgage Discharge
If you have paid off your mortgage or plan to do so soon, contact TC Young’s Residential Property Team. Our experienced solicitors will guide you through the mortgage discharge process in Scotland, making it as smooth as possible.
Get in touch today to complete your mortgage discharge hassle-free!
