What is surplus?
Once a property has been taken into possession and sold, any outstanding balance on the mortgage will be redeemed. If there are funds' remaining after the mortgage has been cleared, these are known as surplus funds. The title of the property will be reviewed to identify who is entitled to these funds (for example you, as the customer, or another party who holds a charge against the property). Enquiries will be made and checks undertaken to allow the funds to be distributed to the next entitled.
What is the verification process to access surplus funds?
If you, as the customer, are next entitled to the funds following the redemption of your mortgage, you will need to follow our verification process to allow for the funds to be sent to you. We will ask that you complete a form that confirms your personal details, as well as where you wish for the funds to be sent. You will be required to provide certified copies of your identification documents, as well as proof of address. The details of which documents are acceptable for this purpose are set out within the forms that you will be sent.
We can now verify your identity using our third party app Thirdfort and by email. Please get in contact for further details.
What happens in the event of a dispute?
Any dispute between parties regarding the split of the surplus proceeds will mean we are unable to make payment of these funds, and we will instead pay them into Court. This is due to us acting as 'Mortgagee in Possession', and we are therefore unable to act as mediators between parties involved in a dispute.
What is the Court process?
Once it has been established that we need to send funds to the Court (such as in the event of a dispute as set out above), we will submit full details to the Royal Courts of Justice. Once accepted we will provide the funds to the Court Funds Office, for which we will receive a lodgement receipt. A copy of this will be provided to all of the interested parties. This receipt provides details of how to contact the Court to make any enquiries in respect of releasing the funds.