Remortgaging

Homeowners may consider remortgaging to pay off an existing loan or to borrow additional funds to pay for home improvements, or simply because their fixed term has ended. A remortgage may be also required at a time when individuals wish to add another party to the mortgage and change whose name a property is held in, known as a Transfer of Equity. Our residential property solicitors based in Essex and London are legal experts in dealing with all manners of remortgaging.

These days, many lenders will offer a ‘free legal service’ with a straightforward remortgage. This removes the requirement for the borrower to instruct solicitors, though it means you will be unrepresented and receiving no legal advice on the matter.  This is not an issue on most run of the mill remortgage, however, it is not always available. Solicitors who do act upon these matters are instructed on the lender’s behalf, and for the benefit of the lender only. They will not advise the borrower on the mortgage offer terms or act in the borrower’s best interests.

Whilst remortgaging may sound straightforward, your new lender will usually require searches and an examination of the legal title to be carried out almost as though you were purchasing the property for the first time. As a result, the remortgaging process can take some weeks whilst all the necessary information is assembled. Your conveyancer has an obligation, not only to you, but also to your lender to ensure that their requirements are satisfied. Our residential property solicitors are well versed in the entire remortgaging procedure and are able to guide you seamlessly through the process.

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Where a full investigation of title is required by either the Lender and/or the Borrower (you), the legal adviser will obtain copies of the borrower’s title deeds, apply for searches, request a repayment figure from any current lender, receive a copy and report to the borrower on the terms of the new mortgage offer, check all documentation to ensure compliance with the new lender’s requirements, raise queries with the borrower as necessary, agree a completion date for the re-mortgage to take place, request funds, request final repayment figure, on completion ensure repayment of old mortgage, and submit registration of the new mortgage to HM Land Registry. There may also be other steps required dependant on the property in question.

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You will have to produce the following documents in order to successfully apply for a remortgage that requires a full investigation of title: planning permissions, building regulations approvals, building regulations completion certificates, gas safety reports, FENSA replacement window certificates, boiler installation certificates. The documentation is likely to be the same as you would have to provide if you were selling your property.

Where a full investigation of title is not required, the documentation required will be much more limited.

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The only difference is that additional information must be obtained. This is usually requested from the landlord and includes details that ground rents and service charges are paid up to date, details of any notices that have to be served upon the landlord to advise of the change of lender, and details of any upcoming expenditure which may result in a rise in service charge payments.

There is also potentially going to be additional fees payable to a Freeholder/Management company for certificates, consents, notice of Mortgage etc as required by the Lease.

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