Remortgage Conveyancing

What is Remortgage Conveyancing?

Remortgage conveyancing is the legal work required when switching your mortgage to a new lender. Although you’re not buying or selling a property, a solicitor or licensed conveyancer is still needed to manage the legal formalities. Their role is to make sure the previous mortgage is settled in full and that the new lender’s interest is correctly registered against the property.

Do I Need a Solicitor to Remortgage?

If you’re moving to a different lender, a solicitor or licensed conveyancer will be required to carry out legal checks, pay off the existing mortgage, and register the new lender’s charge with HM Land Registry.

However, if you’re staying with your current lender and simply switching to a new deal, known as a product transfer, legal work is typically unnecessary. Since the lender remains the same and no changes are made to the existing charge, a solicitor isn’t involved.

The Remortgage Conveyancing Process

Step 1. ID Check

Even if you’ve already supplied identification to your new lender, your solicitor will have to carry out their own checks. This is to meet anti-money laundering and regulatory requirements. You’ll need to provide photo ID, such as a valid passport or driving licence, along with a recent utility bill or bank statement as proof of your current address.

Step 2. Assess Current Mortgage

Next, your solicitor will contact your current lender to get a redemption statement. This document outlines the remaining loan balance, any interest owed, and any early repayment charges or admin fees.

Step 3. Verify the Property Title

Your solicitor will request an official copy of the property’s title register from HM Land Registry. This document reveals legal ownership and any existing charges, restrictions, or third-party interests affecting the property.

Once your current mortgage is repaid, the lender’s charge will be removed from the title. If other charges are registered, then your solicitor may need to obtain consent or arrange for these to be postponed before the new mortgage can go ahead.

Step 4. Review Mortgage Offer Terms

Once your new mortgage offer is issued, your solicitor will review the document to guarantee all legal conditions and lender requirements are clearly understood and can be met.

If the property is leasehold, additional checks will be carried out to confirm the lease complies with the lender’s criteria. This includes reviewing clauses, like obligations to inform the freeholder about any changes to the mortgage, to avoid complications.

Step 5. Property Searches

Your solicitor will now carry out any property searches required by your new lender. A key search is the local authority search, which identifies planning permissions, restrictions, or other issues that could affect the property’s value or use. In some cases, the lender will accept a search indemnity insurance policy instead of full searches. This can be a faster and more economical option.

Step 6. OS1 Priority Search and Bankruptcy Checks

As the remortgage nears completion, your solicitor will carry out a final round of legal checks. One of these is the OS1 search, an Official Search with Priority, which effectively places a temporary hold on the property title. This prevents any other changes or legal interests from being registered before your new mortgage is completed.

A bankruptcy search will also be conducted to confirm that none of the registered owners is currently bankrupt.

Step 7. Certificate of Title

Once all legal checks have been completed and the solicitor is satisfied that the lender’s conditions have been met, they will issue a Certificate of Title to the new lender. This formal document shows that the property is suitable for lending and that everything is in place for the transaction to proceed.

At the same time, the solicitor will request the release of the mortgage funds, ensuring they arrive in time for the agreed completion date.

Step 8. Completion

Before completion takes place, your solicitor will send you a final financial statement. This document outlines any balance you need to pay to complete the remortgage, or the amount you’ll receive if you’re borrowing more funds. It will also include a full breakdown of legal fees, disbursements, and any other associated costs.

On completion day, once the funds have been released by your new lender, your solicitor will repay your existing mortgage in full and settle any outstanding fees. If you’ve decided to borrow extra, for purposes such as home improvements, the remaining funds will be transferred directly to your bank account.

Step 9. New Mortgage Registration

Post-completion, your solicitor will arrange for your new lender’s charge to be registered with HM Land Registry. This records the lender’s legal interest in the property.

The registration process can take several weeks to finalise, especially if the property is leasehold. In such cases, additional steps might be required. For example, getting confirmation from the freeholder that ground rent and service charges are paid up to date.

Other Considerations

If you’re using personal funds to repay your existing mortgage, your solicitor is legally obliged to verify the source of those funds. The type of documentation required will be determined by how the money was obtained. You may be asked for:

• Bank statements showing regular savings accumulation
• A completion statement from the sale of another property
• Pension withdrawal documentation
• Probate or inheritance papers
• Documentation relating to the sale of shares or receipt of dividends

It’s important to note that cash payments and funds originating from overseas are generally not accepted for mortgage redemption, due to strict anti-money laundering regulations.

How Long Does Conveyancing Take When Remortgaging?

Remortgage conveyancing takes between four and eight weeks to complete. Since there’s no property changing hands, the process is more straightforward than a standard purchase. Similarly, lenders’ requirements are less rigid for a remortgage, which speeds up the legal work and reduces potential delays.

Remortgage Conveyancing Fees

Remortgage conveyancing costs can vary depending on your individual circumstances, the complexity of the transaction, and your lender’s specific requirements. In particular, leasehold properties often involve extra legal work and typically incur higher fees.

Here are the common charges you might encounter:

• Solicitor’s legal fee: £300-£1,000
• Land Registry documents (official copies): £7-£11 each
• Additional leasehold fee (if applicable): From £100
• Land Registry registration fee: £20-£150 (based on property value)
• Local authority search: £50-£250
• Search indemnity insurance (if used instead of searches): £20-£300

Some lenders offer a free basic legal service as part of their remortgage package, while others provide a cashback allowance to help cover legal expenses. It’s worth comparing mortgage deals, as factoring in legal costs could make a significant difference to the overall value.

Get Expert Remortgaging Advice

Before you begin the legal process, it’s wise to get a tailored quote for your remortgage conveyancing. Considering the cost of remortgaging, finding the right deal for your circumstances is vital, and a bit of expert guidance can make all the difference.

Our comparison tool lets you compare remortgage deals from lenders across the UK, providing access to up-to-date rates and competitive options. Once you’ve found a deal that suits your goals, our experienced team will walk you through the next stages with clarity and care.

We take the time to understand your personal situation so that you secure a solution which supports both your immediate needs and long-term plans. Whether you’re ready to get started or just want some advice, don’t hesitate to get in touch. We’re here to make your remortgage journey transparent and stress-free.