Residential freehold remortgage
Our fees and the disbursements payable for a residential freehold remortgage depend on a number of factors, therefore we always provide our clients with a bespoke quote before accepting instructions to act in a remortgage.
Our fees cover all of the work required to complete the remortgage including dealing with removal of the old mortgage and registration of the new mortgage against the title to the property at the Land Registry.
- Legal fee ranging between £450 and £795 depending on the following factors:
- The value / level of borrowing for the new mortgage
- Timescales required for remortgage
- The existing mortgage and any secured third party loans or charges
- Property has been altered without requisite consents
- Access issues
- Property is let
- Issues arising from your mortgage company’s valuation of the property and any unusual or onerous conditions of the mortgage offer
- Issues with the legal title
- Electronic money transfer fee £30 per transfer – one transfer required for redeeming the mortgage of the property and a second transfer required if the amount borrowed under the new mortgage is more than the amount borrowed under the existing mortgage (to send the balance to you)
- Fax, telephone, photocopying and incidental expenses £25
- VAT payable on all of the above at 20%
Disbursements are costs related to your freehold remortgage that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process and for you and your lender. The disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply. We will update you on the specific fees upon receipt and review of the mortgage offer and other documents.
- Search fees for local, water and drainage, environmental and other reports: these depend entirely on where your property is located and on what you/your lender require. Often the fees are between £250 and £600. Alternatively, it is sometimes possible (depending on the lender’s requirements) to obtain indemnity insurance for absence of search results. Often the premium for such insurance is between £30 and £70.
- HM Land Registry fee for official copies of the title and plan £6
- HM Land Registry search fee £3
- HM Land Charges Registry fee for bankruptcy search £2 per borrower
- HM Land Registry fee to register your new mortgage: this depends on value of the new mortgage, see http://landregistry.data.gov.uk/fees-calculator.html
- VAT payable at 20% on fee for local search if such search is required
For an average freehold residential remortgage of a property for £300,000 where local, drainage, environmental and chancel searches are not required by the lender, our estimated fees inclusive of VAT total £660 and the estimated disbursement costs inclusive of VAT total £86, making an estimated total expenditure for the remortgage of £746.
The exact stages involved in the remortgage of a residential property vary according to the circumstances. However, a typical transaction involves the following stages, all of which would be covered by our fee set out above:
- Take your instructions and give you initial advice
- Receive and consider the mortgage offer and advise you of principal conditions
- Consider mortgage valuation
- Obtain a redemption statement from your existing mortgage company
- Obtain and consider title documents
- Draft enquiries for your new lender and obtain your replies to these
- Carry out searches or obtain quotations for search indemnity insurance
- Obtain and consider planning and building regulations consents, guarantee and buildings insurance documentation where applicable
- Report any issues to your new lender
- Obtain your signature to the Mortgage Deed
- Agree completion date (date the remortgage takes place)
- Submit a report on title to your new lender
- Obtain pre-completion searches
- Complete remortgage and redeem your existing mortgage
- Arrange search indemnity insurance policy, if applicable
- Deal with application for registration of the new mortgage at Land Registry
How long will my remortgage take?
How long it will take for the remortgage to complete will depend on a number of factors, such as
- The speed at which your mortgage application is processed
- If the legal title to the property is defective or unregistered, or has other problems
- If the mortgage company’s valuation raises any issues
- If building regulations or planning consent has not been obtained
- If crucial documents needed to complete the remortgage are not provided
The average process takes between 3 and 5 weeks from issue of your mortgage offer.