Re-mortgage of a freehold property

Price transparency

Due to the numerous variables on a transaction it is difficult to predict what the legal fee will be as this is calculated on a time spent basis and dependent on a number of factors involved including the level of seniority of the fee earner allocated to your matter. However as a result of many years of experience we are usually able to deal with these matters quickly and efficiently and within budget. It would be preferable to have a quick call with you to discuss the transaction before submitting a personalised fee indication but below is a general estimate of the fees and expenses involved on a regular straightforward re-mortgage on freehold purchase.

 

Our fees (excluding VAT) (applies to transactions with a loan value of up to £1m)

 

£500-£900

For transactions where the loan value is £1m and above please contact us for a personalised quote

 

Disbursements (excluding VAT)

 

Disbursements are costs related to your matter that are payable to third parties such as Land Registry fees. We handle payment of the disbursements on your behalf to ensure a smoother process

 

Disbursement Fees
Land Registry Fees £20-£455
Local Search (dependant on which Local Authority but say) £150-£350
Chancel Check Search £20
Drainage Search £50-£100
Environmental Search £50-£100
Highways Search £50-£110
Utilities Search £50-£250
Land Registry Search £3
Bankruptcy Search £2
Bank Charges £20

 

What are the key stages of the Re-mortgage process on a freehold property?
  • There may be varying reasons as to why you are re-mortgaging your house. It may be to free up equity for an extension or to settle a legal charge on the property or secure a better interest rate on your mortgage.
  • Proof of identity will be requested from you and we will supply you with an initial letter of engagement for our services. We will also ask you for your current mortgage account number.
  • We will then write to the current mortgage lender and request that they forward any title deeds along with an initial redemption statement.
  • We will obtain an official copy of the property title from the Land Registry.
  • Once the title information has been received this will then be checked by us as this provides legal information with regard to the property as well as a plan of the subject property/land.
  • Depending on the lender, searches may or may not be required for a re-mortgage. We will check the specific lenders criteria and submit any necessary searches. It may be possible in the alternative to obtain indemnity search insurance and we will advise you of this.
  • Your lender should issue the mortgage offer, a copy of which should be sent to us. We will check the terms of the offer to ensure that the value of the property is correct and that the conditions of the offer are met. We will report to you on the terms of the mortgage offer explaining how much you are borrowing, interest rates, monthly payments and any special conditions.
  • We will then arrange for you to sign the new mortgage deed.
  • We will request a final redemption statement from your lender to repay your existing mortgage.
  • Prior to completion we will carry out a bankruptcy search against each borrower to ensure that you are not bankrupt. We will also carry out a Land Registry priority search to ascertain whether any interests have been registered against the title since we obtained a copy of your title at the outset.
  • Once the completion date has been agreed we will request the mortgage funds from the lenders, most of whom require an average of five working days' notice.
  • On the day of completion we will receive the new mortgage funds from your lender and we will then redeem your existing mortgage.
  • After completion we will deal with registration of the new mortgage with the Land Registry and supply you with a copy of the new title.
How long will your matter take?

The matter should normally take between 4-8 weeks. This can vary depending on if your lender requires property searches to be carried out.

Factors that can make your matter more complex?
  • A lease may require that the mortgage of the flat cannot take place without the prior written consent of the landlord. This document is called a licence to charge
  • Compliance with restrictions on the property title
  • If the mortgage is not a “first mortgage” on the property
  • If a deed of priority or any ancillary documents are required to the main transaction
  • Unforeseen complications arising
  • If documents requested from the client have not been provided and we are chasing for these

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