Do I need a conveyancing solicitor when remortgaging?
Yes. You do need a conveyancer or solicitor to remortgage your property.
Most mortgage lenders will pay for the conveyancing to be one on your remortgage, but you will need to use the lenders own solicitor but at least its free. Not all lenders offer this though so make sure you check with your lender you are remortgaging to or the adviser who is arranging your remortgage.
Will I always need a solicitor when I remortgage?
Remortgaging always requires the use of a conveyancing solicitor. If you’re only getting a further advance (i.e., borrowing more money on your current mortgage from your current lender), there are no legal fees or processes involved.
If you do a product transfer with your current lender by simply moving to a new rate or deal you do not need a conveyancer. This “product transfer” requires no additional legal work. If you remortgage to a different lender then you would require the use of a solicitor or conveyancer to assist with the legal aspects of the transaction.
Which solicitor should I use for a remortgage?
The good news is that most lenders will offer free legal advice as part of their remortgage package, which means that their preferred solicitor will take care of all legal requirements.
There are a few circumstances under which you’ll need to hire your own solicitor / conveyancer:
- Adding or removing a friend or partner to the mortgage – If you want to remortgage and add a friend or partner, you’ll need to hire a solicitor because you’ll be changing the ownership of the house. A ‘transfer of equity’ is another term for this. Solicitors will be required to amend the deeds and assist in the preparation of paperwork defining how you will own the land. Some mortgage lenders who provide free standard legal costs for remortgaging will charge a little extra for the transfer of equity. This may be cheaper than hiring your own solicitor to handle this.
Conveyancing Remortgaging fees: how much does it cost?
Most high street lenders do not charge any conveyancing fees for remortgaging. But not all. You can get a solicitor to arrange your remortgage from around £250 upwards.
Can you add legal fees to your remortgage?
The lender themselves usually covers the legal fees on a remortgage if it’s a standard remortgage with no extra work. If you have enough equity in your property, you may be eligible to raise sufficient funds to pay the legal costs involved.
Should I use the mortgage lender’s conveyancer?
You can use any solicitor or conveyancer you wish but the cost will be paid for by you as it is your choice. You can use the solicitor recommended by your mortgage lender. If it’s free and included in the remortgage package, you would be best just to use theirs.
Not every lender works with every conveyancer. Each lender has a panel of solicitors who have been vetted by the lender and are regulated by the Solicitors regulation Authority (SRA) and they must have a certain amount of supervisors or managers and partners within the firm.
Why do you need conveyancing when remortgaging?
When remortgaging a home you own, you’ll need to run a number of checks and searches, as well as manage a number of other relevant legal and financial information correctly.
Conveyancing is the term used to describe the legal process of remortgaging, purchasing or selling a home, and it is usually handled on your behalf by a trained conveyancing professional.
When you use a conveyancing solicitor or licenced conveyancer for this procedure, you can be assured that all of the specifics have been taken care of, protecting you legally and financially while ensuring that the process goes smoothly.
What does the conveyancer/solicitor do?
Despite the fact that remortgaging is less difficult than buying a house, it nevertheless necessitates some legal work. The following steps are involved in the remortgaging process:
- ID Checks – your solicitor will ask you for proof of ID to protect against money laundering.
- The current mortgage – your solicitor will get details of your current mortgage from your existing lender and ask for a redemption statement. This gives details of how much you owe and any exit fees or early repayment charges.
- Leasehold inspections – A solicitor may examine the lease conditions and the remaining period on the lease to ensure that they meet the criteria of the new lender.
- Property searches – your new lender can require property searches before approving a loan on a property.
- Fine print – the conveyancer will go over the terms of the mortgage deal with you and raise any concerns with the lender.
- Signature – when you are happy, you will sign the new mortgage deed.
- Final checks – your lawyer will run a bankruptcy search to ensure you haven’t been found bankrupt before.
- They’ll also do a priority check at the Land Registry to ensure that the property deeds haven’t changed since the remortgage started and to ensure you own the property and are legally allowed to remortgage the property.
- Completion – When your conveyancer collects the mortgage funds from the new lender, they will pay off the old mortgage and any expenses owed to you and send any remaining funds to you.
- When your old lender confirms they’ve obtained the money and discharged their mortgage, the solicitor will notify the Land Registry of the remortgage and amend the legal title to your property by notifying them of the new charge by your new mortgage lender.
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Conveyancing for a leasehold property remortgage
The remortgaging of a leasehold property requires a few additional measures, which your solicitor or licenced conveyancer can help you with.
To begin, they’ll need to verify that the remaining lease term meets the criteria of your new mortgage lender. Many lenders would be hesitant to lend on a leasehold property with a lease term of 80 years or less, but this does depend on the criteria of the lender.
Your conveyancer will also need information about your service charges and ground rent, as well as a copy of the property’s buildings insurance records, from your landlord or their managing agent.
Your new mortgage lender would also need a copy of your lease (which you should have). Your conveyancer may request a copy of your lease from the Land Registry or the management company if you don’t have one.
How long does conveyancing take when remortgaging?
It takes one to two months to remortgage a home. So, if you want to remortgage before your new contract expires, give yourself at least three months’ notice.
Find a reliable conveyancing team for your remortgage
Whether you are gifting a property to a child, getting married or separating, or transferring equity for any other reason, we can help you find an expert conveyancing solicitor. Even if you are just looking for advice, we can help.
To find out more about our conveyancing for remortgaging, call us today on 01273 738 072 or use our contact page to ask for details.