Whilst it’s all part and parcel of home ownership, remortgaging can sometimes be a tricky process so you’ll need to take legal advice on it. We’re on all the main lender panels and the majority of the smaller lenders which means we can act for you and the lender at no extra cost. These are some of the things you need to understand:
What is a remortgage?
A remortgage is when you apply to borrow money from a lender to repay any existing charge secured against your property and/or to release further equity from the property.
How much does it cost for you to act in remortgaging my property?
(Please note that we receive instructions from certain lenders to act for them only in remortgage transactions and that the information that follows does not relate to such transactions.)
Our average legal fee to act in the re-mortgage of a property is £466 plus vat which amounts to £559 inclusive of vat. Our fee is calculated by reference to the amount of the new mortgage and is a fixed fee – our fees for remortgages are not based on hourly rates. This is for the time that we spend and our expertise.
It includes acting for the owner and also their lender. It doesn't include dealing with a contemporaneous Transfer of the property. It also doesn't include payments that we make to third parties on your behalf which are commonly referred to as disbursements.
Are there any other potential costs I should be aware of?
There could be. They're known as disbursements and we've outlined them below:
- Land Registry fees: These are fees payable to the Government Land Registry to obtain up to date copies of the registers of your property and copies of any deeds that they hold that are of interest to a lender, such as a Lease. The cost of obtaining these depends on the number of documents involved but is usually between £6 and £20. Vat isn't payable
- Freeholders/Managers Information fees: These are fees charged by a freeholder or manager of your property to provide information required on behalf of your lender. Sometimes the information is provided free of charge – for example, in the case of a house, all that may be required would be a receipt for the ground rent. However, a freeholder and/or manager of a leasehold flat might charge between £100 and £300 plus vat for providing all the information required. If such a fee arises in the case of your property. we'll advise you once this is known and will ask you to pay the fee to us so that we can obtain the information
- Notice of mortgage fee: If you take out a mortgage, then your lender will require that notice of the mortgage is given to any interested parties under the deeds. Accordingly, this is a fee charged by a third party to register the new mortgage and will usually apply if the property is leasehold. It may also arise if the property is freehold and there's a specific requirement in the Deeds to give notification to a management company or similar. The fee varies depending what the Deeds say and/or what the third party demands. Often the fee is between £50 and £250 plus vat
- Certificate of compliance fee: A Certificate of compliance from a third party is sometimes required under the terms of the Deeds, particularly in the case of flats. This might, for example, have been registered so that the third party can ensure that when a property changes hands, its requirements are dealt with and that any rent and/or service charge for communal areas has been paid up to date. Again, the fee is usually between £50 and £250 plus vat
How long does the remortgage conveyancing process take?
Unfortunately, nobody can say for sure how long the process will take – every transaction has its own different circumstances. The length of the chain of properties, the type of transaction and the speed at which other parties involved in the transaction work will all be relevant. Furthermore, if a new mortgage is required by one or more parties involved, that can also cause delay as, generally speaking, mortgages appear to be taking longer than people expect.
For a straightforward remortgage transaction, completion should take place within two to four weeks of the mortgage offer being issued.
How does Russell & Russell provide a conveyancing quotation for my remortgage?
We always provide a written quotation at the outset of a transaction, based on the information provided to us at that time so that you know where you stand and to ensure that there’s no misunderstanding between us at a later time.
In the case of residential conveyancing, we’re usually able to offer a fixed fee for our time. We’ll quote a fixed fee for the work normally undertaken in a standard case and will include a list of additional fixed fees that we would charge if you require additional work to be undertaken. Examples of this would be arranging a Title Indemnity Policy, Help To Buy ISA, preparing a Trust Deed or dealing with a Deed of Covenant. We may also be prepared to work on a “No Sale No Fee” basis – please ask about this if it’s of interest to you.
We’ll always honour the fixed fee unless the information relied upon by us at the time of the estimate was incorrect, or it subsequently becomes apparent that there’s an issue that will significantly affect the amount of time that has to be spent. In either case, we’ll notify you of any such development before we proceed further.
Examples of circumstances that might change the cost would be if the property is a flat, not a house as you initially informed us. Or, if a lease extension is required or if the ownership is defective and remedial action is needed.
For a free quote and breakdown of related disbursements known at this time please use our quote enquiry form.
In addition to receiving instructions direct from buyers and sellers, we also work alongside brokers, referrers and property agents who refer clients to us. If we have agreed to pay to them a referral fee for recommending us to act for you, then we’ll disclose the amount to you and we’ll pay the amount involved to the referrer out of our fee.
What are the key stages of the conveyancing remortgage process?
You should instruct us once you submit the mortgage application so that we can be prepared and ready to take action immediately you receive an acceptable mortgage offer. Once you have accepted an offer, and instructed your conveyancer to proceed, there are several steps which must be completed. The key stages included in our prices are:
- You instruct your conveyancer and the usual Identity and Anti Money Laundering checks are undertaken
- Title deeds, mortgage redemption figures (if you have a mortgage) and other required information are gathered from you. These tend to be more complex for leasehold or managed properties
- Any searches required by the new lender are carried out by your conveyancer, which may give rise to further enquiries that you may need to assist in answering
- In anticipation of this we'll arrange for you to sign the new Mortgage deed and will obtain and check your mortgage redemption statement to ensure there is enough money to redeem your mortgage
- A completion date is agreed and we request the new mortgage advance from your new lender
- On the day of completion, the new lender sends the mortgage monies to our bank account. When the monies are received the transaction is complete and your conveyancer will attend to redemption of your mortgage. Following completion, your conveyancer will attend to the distribution of the balance mortgage proceeds available for payment to you by transferring funds to your bank account and will notify you that all has satisfactorily completed. Time permitting, this will be dealt with on the day