Re-mortgaging your home or property is usually done in order to raise finance, or to take advantage of a preferential financial climate. It can be a complicated process and should not be undertaken without instructing a specialist property law solicitor.
In most cases, people secure a further mortgage with a new lender. This is generally done either by speaking directly with the lender or instructing a mortgage broker to secure the best mortgage deal for you. Once a mortgage has been agreed in principle, the lender will usually require a valuation of the property. After the property has been valued and assuming that everything is as expected, the lender will issue a mortgage offer.
Although you are not buying a new property but simply arranging a new mortgage, in many cases, the legal process for registering your new mortgage is almost the same as you buying a new property with a new mortgage. Often, your new mortgage lender will require us to do searches and the steps that we would normally take when a property is purchased.
We are usually instructed by clients once they have secured a mortgage in principle. Most people do not wait until they receive the mortgage offer but start the process as soon as the mortgage has been agreed in principle. It usually takes between 2 to 4 weeks to deal with the re-mortgage on behalf of a client. In some cases, it may take longer if the lender has a long list of requirements. Once the new mortgage has been arranged, we must register the new mortgage at the Land Registry.
When you instruct us to deal with the re-mortgage, we will do the following on your behalf:
- Liaise with your mortgage broker
- Obtain and review the title deeds to your property
- Check the re-mortgage offer and advise on its effect
- Conduct legal searches as required by the new lender
- Comply with any Special Conditions contained within the mortgage offer
- Once you and we are satisfied that the re-mortgage can go ahead, we will send a certificate of title to the lender who can complete the process.
- Redeem your current mortgage (if any) upon
completion of the re-mortgage.
- Following completion of the re-mortgage, we will then make the relevant application(s) to register the charge with Land Registry and/or Companies House, as well as serving the relevant notice upon the landlord if the property is leasehold.
Most clients do not appreciate the work that needs to be completed in order to deal with the re-mortgage and often do not take into account the costs associated with a re-mortgage. In addition to legal fees, clients often have to pay an arrangement fee to the lender and a finder’s fee to the broker, as well as any disbursements such as searches. Despite these charges, regularly reviewing your mortgage can potentially save you £1,000s.