Will you need to instruct a solicitor or conveyancer if you remortgage your property?
Article by Emilie Gouzien.
If you are looking to remortgage and are unsure whether a solicitor is needed or what steps need to be taken, then Goughs is here to assist. We have answered some of your typically asked questions to assist you in deciding what to do.
First let’s start by explaining when you won’t need a solicitor.
Questions to be answered in this article
When don’t you need a solicitor to remortgage?
A solicitor will not be needed if you switch to a new deal with your current lender. This type of remortgage is known as a ‘product transfer’ and requires no additional legal work.
When do you need a solicitor to remortgage?
There are a number of circumstances where a solicitor would be needed:
If you are adding someone to the mortgage, you will be changing the ownership of the property. In this circumstance Deeds would need to be amended and paperwork drawn up which details how you will own the property.
If you are removing someone from the mortgage.
If you are remortgaging with a new lender.
As each individuals’ circumstances can be different, we recommend giving us a call to discuss your options.
Should I remortgage in the first place?
Generally, individuals decide to remortgage so they can receive a better deal. Below are some of the reasons to remortgage:
Your current mortgage deal is about to end.
You want a better mortgage rate.
You wish to change from an interest only mortgage to a repayment mortgage.
You want to change to a flexible mortgage.
Is Equity Release the same as remortgaging?
An equity release differs from a mortgage and essentially means your lender will give you cash in return for a share of your sale proceeds when you sell your property.
There are two types of equity release and each has specific conditions:
- Lifetime mortgage which requires all owners to be at least 55 years old.
- Home reversion plan which specifies all owners must be at least 65 years old.
What will a solicitor actually do?
Your solicitor contacts your existing lender to get your current mortgage details and request a redemption statement which will specify how much is owed and whether there are any early repayment charges. Arrange settlement to redeem the current mortgage.
If your property is a leasehold, your solicitor will complete checks to make sure sufficient time remains on the lease in order to comply with your new lender’s requirements.
If your mortgage lender requests this, your solicitor will complete property searches. If searches are not requested, we will put in place a search indemnity policy.
Deal with the mortgage offer and confirm any terms and conditions once the lender has completed their valuation.
Arrange the new mortgage deed for signature.
Your solicitor will check you have never been declared bankrupt.
On the completion day, your solicitor will receive your mortgage funds, redeem your old mortgage and pay any other associated fees.
The last stage is for your solicitor to register your new mortgage with the Land Registry which will update your legal title documents.
What are the typical costs and fees involved in a remortgage?
Legal fees: Ours start from £850 plus VAT.
Land Registry registration fee: This can range from £20 – £910 depending on the value of the property.
Bankruptcy search: Totalling £2.40 (per individual) to ensure you have never been declared bankrupt.
AML Identity checks: Totalling £7.50 (per individual).
Priority search: A search checks that nothing has changed or been added to the property deeds since the remortgage process began and totals £3.60
Official Copy Entries / Title documents: totalling £7.20.
Searches or a search indemnity policy: The cost for this will differ based on the lender requirements and property value.
For more information about our residential property fees, click here.
How long does a remortgage take?
Remortgaging is generally a quicker process than selling or purchasing a property. From receipt of the remortgage offer the process can be finalised within 4 – 8 weeks.
How can Goughs help me?
Goughs has a wealth of knowledge in dealing with remortgages in a timely manner. At Goughs we will offer you a dedicated solicitor, so you have a point of contact from your initial discussion. We will ensure the remortgaging process is dealt with as swiftly as possible.
Please contact any of our Wiltshire based offices or email email@example.com for a discussion about your remortgaging needs and to receive your bespoke quote.
If you would like a free residential property estimate please complete our conveyancing quote form.