06. Remortgaging via Power of Attorney
Remortgaging via Power of Attorney refers to the process of refinancing a mortgage on behalf of someone else who has granted authority to act on their behalf through a power of attorney document.
Here is how it works:
| Power of Attorney (POA) | A power of attorney is a legal document that grants someone else (the attorney) the authority to make decisions and take actions on behalf of the person granting the power (the principal). The power of attorney may be granted for various purposes, including property transactions, financial matters, or healthcare decisions. |
| Granting authority | In the context of remortgaging, the property owner (the principal) may grant authority to another person (the attorney) to handle the remortgage on their behalf. This may occur for various reasons, such as the principal being incapacitated, unavailable, or simply preferring to delegate the responsibility to someone else. |
| Attorney's responsibilities | The attorney has a legal duty to act in the best interests of the principal and carry out their wishes regarding the remortgage of the property. This includes researching mortgage options, negotiating terms, and completing the necessary paperwork on behalf of the principal. |
| Legal requirements | When remortgaging via power of attorney, certain legal requirements must be met to ensure that the transaction is valid and legally binding. This may include providing proof of the power of attorney document, complying with any specific instructions or limitations outlined in the document, and obtaining any necessary approvals or consents. |
| Conveyancing process | The conveyancing process for remortgaging via power of attorney is similar to a standard remortgage process, with the attorney representing the principal throughout the transaction. This includes working with a conveyancer or solicitor to handle the legal aspects of the remortgage, liaising with the lender and their representatives, and facilitating the new mortgage agreement. |
| Completion of remortgage | Once the remortgage terms are agreed upon, the attorney signs the necessary legal documents, including the mortgage deed and any other required paperwork, on behalf of the principal. The new mortgage funds are typically provided from the principal's funds or financing arrangements, and the existing mortgage is repaid with the proceeds from the new mortgage. |
Attorneys acting jointly vs. severally
- Attorneys acting jointly: Attorneys acting jointly must make decisions together, meaning that all appointed attorneys must agree on any actions taken. This ensures that decisions are made collectively and that no single attorney can act unilaterally without the consent of the other(s).
- Attorneys acting severally: Attorneys acting severally have the authority to make decisions independently of each other. Each attorney can act on behalf of the principal without the need for agreement or consultation with the other attorneys. This provides more flexibility and convenience, as it allows each attorney to act promptly and efficiently without waiting for consensus from other attorneys.
Remortgaging via power of attorney involves granting authority to another person to handle the refinancing on behalf of the property owner. The attorney acts in the best interests of the principal throughout the transaction, and the choice between attorneys acting jointly or severally depends on the preferences and circumstances of the principal.