Explain the purpose of the redemption statement that the seller's lawyer will need to obtain from Pan Euro Bank plc prior to completion.

• A. It provides the exact amount required to redeem the mortgage as at completion, with a daily rate if completion is delayed, and lender bank details.
• B. It provides a valuation of the property.
• C. It lists the seller's debts and personal liabilities.
• D. It confirms occupancy details and moving arrangements.

Answer: (A)

The redemption statement from the lender is meant to confirm exactly what must be paid to discharge the mortgage on completion. It sets out the precise sum required, including the outstanding balance, accrued interest up to the completion date, and any early repayment charges or penalties, along with the lender’s bank details so the funds can be sent to the correct account. It may also show a daily rate if completion happens later than the stated date, ensuring funds reflect any delay. This allows the seller’s solicitor to arrange a correct, complete redemption so the mortgage is cleared before the buyer takes title. Other items like property valuation, the seller’s non-mortgage debts, or occupancy and moving details aren’t the purpose of the redemption statement.