Guide to Remortgage Conveyancing: Costs, Fees, and Do You Need a Solicitor?

Remortgaging your home can be a practical way to reduce your mortgage payments, release equity, or find a better interest rate.

However, navigating the remortgage process can sometimes feel overwhelming, particularly when you encounter terms such as "remortgage conveyancing."

This comprehensive guide will walk you through everything you need to know about remortgage conveyancing, the costs involved, and whether you need a conveyancing solicitor to help with the process.

What is Remortgaging?

Remortgaging refers to the process of switching from one mortgage lender to another without moving house. People remortgage their properties for various reasons, such as securing a lower interest rate, consolidating debts, or releasing equity for home improvements.

Although remortgaging does not involve buying or selling property, it often requires the same legal work that would be needed in a property transaction. This is where remortgage conveyancing comes into play.

Related:

What is Residential Conveyancing?

What is the difference between Leasehold vs Freehold?

What does a Residential Conveyancer do?

How much does Residential Conveyancing cost?

What is Remortgage Conveyancing?

Remortgage conveyancing refers to the legal process involved in transferring the legal title of a property from one mortgage provider to another. This process ensures that the new mortgage is registered with the Land Registry and that the old mortgage is discharged.

The conveyancer's role is to handle all the legal aspects, such as checking the title deeds, dealing with any leasehold terms, and ensuring that any restrictions or obligations on the property are met. They will also liaise with both your current and new mortgage lenders to ensure a smooth transition.

Do I Need a Conveyancing Solicitor to Remortgage?

Whether or not you need a conveyancing solicitor when remortgaging depends on your circumstances. If you are simply switching to a new deal or rate with your existing lender - known as a product transfer - there is no need for additional legal work. In this case, the Land Registry details remain the same, and no solicitor is required.

However, if you are remortgaging with a new lender, you will need to instruct a conveyancer to handle the legal aspects of the transaction. This ensures that the new mortgage is registered against the legal title of your property.

There are some situations where a conveyancer is always required, such as:

• Adding or Removing Someone from the Mortgage: If you are adding a friend or partner to the mortgage (known as a transfer of equity), or removing someone from the mortgage, a conveyancer must be involved to amend the property deeds and reflect the changes in ownership.

• Leasehold Properties: If your property is leasehold, a conveyancer is needed to review the lease terms and ensure they comply with your new lender’s requirements.

How to Choose a Conveyancing Solicitor When Remortgaging

Many mortgage lenders offer a "free legal package" as part of their remortgage deals. This means they will choose a conveyancer to handle the remortgage legal work at no extra cost to you. However, it’s essential to verify whether this legal package is truly free, as some lenders may charge additional fees.

If your lender’s legal package isn’t free or you want to choose your own solicitor, it’s advisable to obtain several quotes to ensure you're getting a competitive deal. You can also compare their reviews and expertise in remortgaging to ensure you are in good hands.

Additionally, some remortgage transactions, such as a transfer of equity, may not be covered by the lender's free legal package, in which case you would need to appoint your own conveyancer.

The 10 Steps of the Remortgage Conveyancing Process

Remortgage conveyancing is generally quicker and simpler than the process involved in purchasing or selling a property. Below are the ten key steps your conveyancer will typically follow during the remortgaging process:

Step 1: ID Checks

Your conveyancer will conduct ID checks to verify your identity. Even though your lender may have already completed these checks, your conveyancer must carry out their own checks to comply with anti-money laundering regulations.

Step 2: Review Your Existing Mortgage

Your conveyancer will obtain details of your current mortgage, including a redemption statement. This document outlines how much you still owe, any early repayment fees, and when these fees expire.

Step 3: Check Leasehold Terms (If Applicable)

If your property is leasehold, your conveyancer will review the lease terms and contact the landlord or management company to gather information required by your new lender.

Step 4: Property Searches (If Required)

Some lenders may require property searches to be conducted, while others are satisfied with indemnity insurance. If searches are necessary, your conveyancer will handle them and inform you of any associated costs. Searches may include checks for planning restrictions, environmental concerns, and other potential issues with the property.

Step 5: Review the Property Valuation

Your new lender will conduct a property valuation to ensure the property is worth the amount being lent. Your conveyancer will review this valuation and flag any issues to you and the lender.

Step 6: Check the Terms of the Mortgage Offer

Your conveyancer will carefully review the terms of your new mortgage offer, making sure everything is in order. They will raise any issues with you or the lender as needed.

Step 7: Sign the Remortgage Offer

Once you are satisfied with the mortgage terms, your conveyancer will require you to sign the new mortgage deed and any other necessary documents. Be sure to return these promptly to avoid delays.

Step 8: Completion

On completion day, your new lender transfers the funds to your conveyancer, who will then use them to pay off your existing mortgage.

Step 9: Send Remaining Funds

If any money is left over after your old mortgage is repaid, your conveyancer will transfer the remaining balance to you.

Step 10: Register the Changes with the Land Registry

Finally, your conveyancer will notify the Land Registry of the remortgage and update the legal title to reflect the new mortgage. This proof of registration is also sent to your new lender.

How Long Does the Remortgage Conveyancing Process Take?

Remortgage conveyancing typically takes less time than the conveyancing process for a property sale or purchase.

On average, the process takes between 4 to 8 weeks. However, this can vary depending on factors such as the complexity of the transaction, whether property searches are required, and how quickly documents are signed and returned.

It's a good idea to start the remortgage process around six months before your current mortgage term expires. This will give you enough time to shop around for the best deals and instruct a conveyancer to complete the legal work.

What Are the Conveyancing Fees for Remortgaging?

The cost of remortgage conveyancing varies depending on factors such as the value of your property and whether it is freehold or leasehold. Typical remortgage conveyancing fees range from £200 to £500. Here is a breakdown of potential fees:

• Legal Fees: These generally range between £100 and £200. The legal fee covers the work that the conveyancer does on your behalf, including liaising with your lender, handling the necessary paperwork, and ensuring that the legal title is updated at the Land Registry.

• Leasehold Fee: If your property is leasehold, there may be an additional fee of around £100. This fee covers the extra work involved in reviewing the lease terms and liaising with the landlord or management company.

• Land Registry Fee: This fee ranges from £20 to £65, depending on the value of your property. It covers the cost of updating the Land Registry to reflect your new mortgage.

• Official Copies: To confirm the ownership and legal status of the property, your conveyancer may need to obtain official copies of the title deeds from the Land Registry. The cost for these copies is typically between £6 and £42.

• Search Indemnity Insurance: Some lenders require indemnity insurance instead of property searches, which protects them in case any issues arise with the property. The cost of this insurance is usually around £30.

These are estimated costs, and the final amount you pay will depend on the complexity of your transaction and your property’s specific circumstances. Some lenders may cover these costs if they offer a free legal package as part of their remortgage deal.

Related:

How can I transfer personal property to a business?

How Long Does the Conveyancing Process Take?

What is a Notice of Transfer Fee?

What is a Deed of Covenant?

Product Transfer vs. Remortgage: What’s the Difference?

A product transfer is when you switch to a new mortgage deal with your existing lender. Unlike a remortgage, which involves moving to a new lender, a product transfer does not require any legal work, property valuation, or searches.

Here are the key benefits of a product transfer:

• No Legal Fees: Since the mortgage remains with the same lender, there is no need for a conveyancer or legal work.

• Faster Process: With fewer steps involved, product transfers are often quicker than remortgaging.

• Cost-Efficient: Some lenders offer free product transfers, and there are usually no additional fees or costs involved.

However, the interest rates on a product transfer may not be as competitive as those offered by other lenders, so it’s worth comparing both options to ensure you’re getting the best deal.

How to Save on Remortgage Conveyancing Costs

There are several ways to potentially save on remortgage conveyancing costs:

• Free Legal Package: Check whether your lender offers a free legal package as part of their remortgage deal. Ensure it genuinely covers all legal fees.

• Compare Quotes: If your lender doesn’t offer a free legal package, obtain several quotes from conveyancers to find the most competitive price.

• Act Quickly: Avoid delays by promptly signing and returning all necessary documents to your conveyancer.

Conclusion: Do You Need a Solicitor for Remortgage Conveyancing?

While you don’t always need a solicitor for remortgaging, having a conveyancer can simplify the process, particularly when switching lenders, adding or removing someone from the mortgage, or dealing with leasehold properties.

They will handle all the legal requirements, ensuring that your remortgage is completed smoothly and your new mortgage is properly registered with the Land Registry.

By understanding the remortgage conveyancing process and costs involved, you can make informed decisions and ensure that you secure the best possible deal for your circumstances.