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Mark Lansdell talks us through the remortgage conveyancing process.
What is Remortgage Conveyancing?
Remortgage conveyancing is redeeming your current mortgage on your property and taking out a new one with a new lender. There are elements of it that can be complex, as there’s a legal process involved.
What does a Conveyancer do when Remortgaging?
When you purchase a property, your Mortgage Lender will also want you to instruct a Conveyancer. The new mortgage that needs to go on your title when you Remortgage also has to be registered correctly within a certain period of time. Lenders will want a Conveyancer to check the legal title, and make sure it’s good security that is okay for the lender to lend on.
Do I need a Conveyancer for a room mortgage?
Yes, it’s really important that you instruct the lawyer, as the lender is lending a large sum of money, so they will want to absolutely make sure that you are going to pay off the mortgage because they’ll want the first priority on your title. This is important to them because they’ll want to be able to take possession of the property, so they’ll want to know that charge is going to be repaid and equally that their charge will then go onto the title.
How long does Remortgage conveyancing take?
This is a shorter process than if you’re buying and selling. A freehold title with no restrictions and a very straightforward title with no complex issues, could be a week or two. If the property is leasehold, you can add a couple of weeks onto that, mainly because we need to deal with landlords, and there’s likely to be some restrictions on the title.
Lots of clients Remortgage and do a transfer of equity at the same time, essentially it’s removal of one person from the deeds and adding on another.
What is the Remortgage Conveyancing procedure?
It starts off very much like a purchase transaction. There’s a quote that goes over to the client, and the clients would often complete forms via us, online. We download their title documents to do a soft check on that title to make sure that they own the property and who their current lender is. All law firms will go through a compliance process to do ID checks, we’ll gather information together, and typically the client will be dealing with a Mortgage Broker or lender directly to obtain an offer.
Once that offer is issued, we’ll go through anything that the lender requires us to report on, and send the report to the client with a copy of the mortgage deed for signing. We’ll, of course, obtain a figure from the current lender, to make sure there’s enough funds coming from the new lender to repay the mortgage, and then we’ll fix the date to redeem that mortgage and draw down the funds from the new lender.
What fees are involved with Remortgage Conveyancing?
Typically the fees are much much lower than if you were buying and selling, usually around £300-£500, depending on the complexity of the case. Leasehold transactions will incur a higher fee because there’s more work involved, and if you were to do a transfer of equity you’re probably looking at another £250 on top, and disbursements, which are third party costs that aren’t legal fees.
You would also need to consider ID checks, title documents, land registry fees, and there could be stamp duty, but that would need to be discussed with the lawyer at the time. All in and if there is no stamp duty or disbursements, anywhere between £50 to £75 really is standard for legal fees.
In terms of fees, lots of lenders offer free Conveyancing for Remortgages. The lender has a panel of lawyers, and will pay the chosen lawyer on behalf of the client. There are some great firms, and lots of clients have success with those lawyers but ultimately, choosing from the lender’s panel does come with some issues.
Typically those firms are running high case volumes, so I would urge clients where a lender is giving you free legals as part of the Remortgage to consider a lawyer who is going to charge you as well. Yes, It’s going to cost you extra money, but in my experience, you will get a better service than going down that free legal route.
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