Remortgage is the process of changing the lender from one to another or applying for an upgraded mortgage offer from the existing lender. A mortgage is a process of taking a loan from a lender to purchase or maintain a home, land, or other types of real estate using the title of the deed as collateral. Homeowners need the remortgage due to a variety of reasons, such as funding a wedding, building an extension, buying a new car, or simply finding a new mortgage deal at favourable rates. The legal process of getting a remortgage offer is called remortgage conveyancing.
A property owner often hires a remortgage solicitor to facilitate the process. A remortgage solicitor acts as a bridge between you and your new lender and ensures that everything complies with specific terms or requirements. Have a look at how the process of remortgage conveyancing works.
Process of Remortgage Conveyancing
1. ID Checks
The process of remortgage conveyancing starts with verifying your ID. It is required to ensure compliance with regulations under anti-money laundering laws. Most solicitors will verify your identity using a third-party online service that can cost you anywhere around £10 per person. It’s important to get these checks done for the best interests of all.
2. Details of Existing Mortgages
Your solicitor will gather the details of your current mortgage, particularly a redemption statement that tells about the outstanding amount, whether there are any early redemption or early exit fees, etc. Your solicitor will also check the lease terms and the remaining time left on the lease if your property is on leasehold to comply with the new lender’s requirements.
3. Title searches, Property searches, and Other Searches
Your remortgage solicitor also obtains title registration documents for your property from HM Land Registry to confirm you are the legal owner of the property you are remortgaging. Your existing lender may request to conduct property searches before giving you a final offer. It helps your lender figure out whether there is something that could negatively impact the value of your property.
Your solicitor will conduct the property searches. After the successful property searches, it is followed by the local authority searches and OS1 priority search, and bankruptcy check. These third-party searches make up a major part of the cost of remortgage conveyancing. You can receive the remortgage conveyancing quote to compare the fee of remortgage conveyancing.
4. Completion day
Once all parties are satisfied, your solicitor will ask you to sign the new mortgage deed. Your solicitor will send you a statement confirming the outstanding balance that you must pay to complete the remortgage and the money you will receive once the remortgage process completes.
5. Registering the Changes with the Land Registry
Once your remortgage solicitor gets the confirmation that you have paid the old mortgage, the last step is to register the changes with the HM Land Registry. The HM Land Registry may take some days to update the title register to reflect the new mortgage.
If you need help with the remortgage offer, you can get in touch with www.phewconveyancing.co.uk/
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