With a re-mortgage, there will be no transfer of ownership in the property in question, but the conveyancer will be undertaking the legal work to transfer a mortgage to a new lender, release equity in a property value, obtain a better rate, and so on.
The following is a brief overview of a standard re-mortgage transaction which gives an overview of the normal process and some of the terms you may come across.
Initial Stages:
- After instruction, we will send you a Client Care Pack which sets out our terms of engagement, confirms the charges within our illustration, and has some paperwork for you to complete and return
- We may require a payment on account to cover the cost of any searches and details of how to pay this will be included within the Client Care Pack. This figure is included within the total cost in the illustration, and is not an extra fee
The Mortgage & lender:
- As part of the application process for your mortgage, your new lender may require a report for valuation Lenders will vary in this requirement and, depending on the loan to value, may be satisfied with a drive by valuation
- Having arranged your mortgage, we will then receive from the lender a copy of the offer letter
- Before completion, you will need to provide a copy of your buildings insurance. The minimum amount of cover you should have will be detailed in your offer letter
Legal Work:
- We will request the deeds from the existing lender and an office copy of your property from the Land Registry for checking
- An estimate redemption statement will be requested from your existing lender
- If the property is leasehold, enquiries will be made of the landlord / managing agents to check if the service charges and rent are up to date, who the notice of charge needs to be served on, etc
- Searches may be required, but this will depend on the lender, or they may accept search indemnity insurance
- We will check the mortgage offer when it is received to see if all is in order and see if there are conditions which need to be met
- You will be required to sign the new mortgage deed
- A final redemption statement will be requested from your existing lender
- We will request the funds from your new lender which will be used to repay the old lender, and do final searches including Land Registry, Land Charges and bankruptcy checks
- On completion, your old mortgage will be redeemed
- After completion:
- The new mortgage will be registered at HM Land Registry
- The title deeds will be sent to the new lender