Conveyancing is the process of transferring the title of an asset from person to person. For a mortgage, the conveyancer secures the lender’s interest against the property’s title. Remortgage conveyancing is transferring that interest from lender to lender or modifying an existing claim.
Why use a conveyancer to remortgage?
It’s prudent to use a conveyancing solicitor for changes to any deed proving ownership. If your remortgage involves switching lenders consider a remortgage conveyancer to change which lender has an interest in your home.
Remortgage conveyancing is faster because there’s no chain and most lenders prefer local searches/indemnity policies rather than official searches so fewer costs equal lower fees.
Lenders often offer to cover legal fees. The lender hires one firm to handle all their transactions at low cost. As you’re not paying, you’ve no control over the choice of firm. As they’re handling bulk transactions for your lender, your remortgage is not a priority. By using an independent conveyancer you’re getting the value of you being their priority.
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Comparing remortgage conveyancing quotes
When finding a firm to handle the process ensure that any conveyancing quote you get compares like for like. Many firms, like this one, offer an instant conveyancing quote online. Check they’re lender approved and for a breakdown of whether the following are included plus the charges for each.
Legal work takes up the majority of the costs varying with the length of processes and any possible complications.
Money laundering checks; when an existing mortgage is being paid off, the lender is legally required to check the provenance of any funds to prevent money laundering, so the remortgage conveyancer must complete these.
Land Registry; lenders will want borrowers’ names checked against the register in case any of them are subject to insolvency proceedings meaning the lender’s security is at risk. The conveyancer must inform the land registry of the interest of the new lender on the title and obtain copies of deeds. Multiple fees are involved.
Transfer fees for securely moving funds from your new mortgage lender to the existing one.
Insurance Indemnity is sometimes used by solicitors instead of some of the above steps which is satisfying to lenders. Check you’re not being charged for searches covered by the indemnity.
You do not need a local solicitor to handle your remortgaging process, choose one that is fairly priced, recommended and efficient.
Choosing a conveyancer and understanding the fees
A conveyancer is needed for a remortgage just as for a purchase or sale. Their job covers preparing the paperwork, dealing with the Land Registry, carrying out the necessary checks, transferring funds and giving legal advice so the change meets every legal requirement.
Conveyancers practise only property law, while a solicitor can work across all areas of law and is often more expensive. If your circumstances are complicated, for example involving divorce, bankruptcy or probate, you will need a solicitor.
The best way to find a good conveyancer is a recommendation from family, friends or colleagues. Be wary of estate agent referrals, which often come with a referral fee, and when reading online reviews check that they come from genuine clients. Budget for the conveyancer’s fee plus Land Registry fees, any searches and bank transfer charges. The total depends on how straightforward the case is, where you live and the type of property.
Removing someone from a joint mortgage
A common reason for remortgage conveyancing is taking a person off a joint mortgage, often after a change in relationship. Legally this is a transfer of equity. A solicitor handles the legal charge between borrower and lender, and the Land Registry records are updated to show the change. Your part is to tell both your solicitor and your lender about the application, and the solicitor will send title transfer documents and a remortgage pack, usually for a fee.
When everyone agrees, the application can be put together quickly. A dispute can drag things out, and if no agreement can be reached the property may have to be sold.
On the mortgage side, the process is much like a remortgage, even if you stay with the same lender, because the lender needs to assess whoever remains on the loan. Expect to provide proof of income, bank statements and credit history, and sometimes the property will be revalued. Once approved and signed, a straightforward case can complete in around a month.