Remortgaging is a process by which you can change your lender. The lender is the person or firm which is lending or has lent you money to buy a property. Until you repay the loan taken from the lender, the lender will hold your property’s title deed. A title deed is a legal document proving that you are the owner of the property. Without the title deed, it is impossible to sell your property.
A conveyancing solicitor, who is a specialist in remortgage conveyancing, can help you out in this regard. The process is complicated and very time consuming.
Steps in remortgage conveyancing
Applying for title deeds and redemption statement
Your conveyancer, that is, your solicitor will ask for your mortgage account number and approach your present lender with the same to apply for your title deeds. Once obtained he/she will check the title deed for any restrictions or special clause so that he/she may convey it to your new lender.
The solicitor will also apply for a redemption statement from the present lender simultaneously to relieve your mortgage and transfer it to the new lenders. The new mortgage must cover the present mortgage.
A local authority search will be done to check the title deed and clear it. This is essential before the new lender can commit to lending you. The results of the searches can affect the value of the property. The searches are:
- Local search
- Water search
- Bankruptcy search
- Land registry search
- Planning and modifications
The solicitor will send you certain forms in which you need to fill up details regarding your property afresh. You will have to affirm the modifications that might have been doe after the property was bought. If yes, then building regulations and permissions have to be attached along as proofs. If the property is leasehold, it has to be mentioned. Else, the property will be assumed to be a freehold house.
Mortgage offer form the new lender
All these legal documents will be presented to the new lenders and they will make a new mortgage offer. The solicitor has to mediate these proceedings. Any new terms and conditions in the new lender’s contract must be adhered to. Building insurance must be applied for. Make sure you have enough at hand to cover the VAT, solicitor’s fee and land tax expenses.
Mortgage deed and getting the monies
After the new lender approves of your identification papers, the lender will forward you a mortgage deed which you need to sign in presence of a witness, usually a solicitor. Once the deed is signed, your solicitor can ask for your mortgage monies from the new lender.
On a completion date, your old mortgage will be paid and the new mortgage will be released. Any balance money owed by you must be paid by an agreed date. Remortgaging is a complex process and hiring a remortgaging conveyancer is a good idea.
For more information on conveyancing solicitors, check out the info available online; these will help you learn to find the conveyancing solicitors!