How Long Does a Deed of Postponement Take?
A deed of postponement is the legal document that allows a second charge to rank ahead of an existing charge on a property. This deed is usually required by lenders who want to do improvements to the property, or if a person wants to change mortgage lenders. It is important that a person receive independent legal advice before he or she signs a deed of postponement.
A deed of postponement is an agreement between two lenders that emphasizes each lender’s rights and responsibilities. The lender who holds the first charge will usually have priority over the non-borrower, but both lenders will still be paid. This agreement also helps ensure that both parties will be paid in the event of a borrower’s insolvency.