Our fees: Remortgage of a freehold/leasehold residential property

Remortgage of a freehold/leasehold residential property

Our fees cover all of the work* required to complete the remortgage of your property, including satisfying the requirements of your new lender and dealing with registration at the Land Registry.

Our fees for a standard re-mortgage* are as follows:

Legal fees:                                         £500.00

VAT:                                                     £100.00

Disbursements

Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

There are certain disbursements which will be set out in the individual lease (if leasehold) relating to the Property. The disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply depending on the conditions of your new mortgage offer.

The disbursements below as based on the property being valued at £150,000:

HM Land Registry fee £95.00 This is based upon the property value or price paid and is shown at

http://landregistry.data.gov.uk/fees-calculator.html

Land Registry search £3.00
Bankruptcy searches £2.00 (per name on the new mortgage product)
Electronic money transfer fee £24.00
Mortgage lender panel fee £12.00 (not always applicable)
Copies of the Register £6.00 (£12 – £30 if leasehold)
Total £677.00 Please note this does not include Stamp Duty or additional leasehold disbursements (discussed below)

 

Search Insurance

Your new lender will likely accept search insurance rather than a full set of searches.  The cost of search insurance depends on the value of the property.  For a re-mortgage of a property worth £150,000 the search insurance would be £17.00 – £20.00 (depending on insurance provider).

Leasehold fees

With a leasehold property there is also likely to be specific additional disbursements which will vary from property to property and can on occasion be significantly more than the ranges given below. We can give you an accurate figure once we have sight of your specific documents.

These additional disbursements can include:

  • Notice of Charge fee – This fee is set out in the lease. Often the fee is £60.00 – £200.00
  • Certificate of Compliance fee – To be confirmed upon receipt of the lease, and can be £160.00 – £400.00.

 

How long will my remortgage take?

The average remortgage process takes between 4-6 weeks.  It can be quicker or slower, depending on the conditions and requirements of your new lender. For example, a small number of lenders will not accept search insurance and will insist on full searches being carried out, which take on average 2-4 weeks to be returned.

If you are remortgaging a leasehold property that requires an extension of the lease, this can take significantly longer, between 2 and 6 months. In such a situation additional charges would apply, which would discussed with you.

 Stages of the process 

The precise stages involved in the remortgage of a residential property vary according to the circumstances. Our work usually includes the following:

  • obtaining information from your deeds;
  • checking your title/ownership;
  • making the pre-completion legal arrangements and checks and reporting to your bank
  • getting the mortgage money from your new lender (if you are obtaining a mortgage) and any balance we will need from you;
  • on the date of completion, repaying your existing mortgage, registering your mortgage with the Land Registry which may take some months (although that makes no difference from your point of view);
  • acting for your lenders to make sure that their interests are properly protected.
  • Dealing with an application for registration at Land Registry after completion

We will not be able to advise you on Capital Gains Tax or VAT (if applicable), or any planning permission/building regulations approval (if required).

* Assumptions:

  1. this is a standard transaction and that no unforeseen matters arise including for example (but not limited to) a defect in title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction
  2. the transaction is concluded in a timely manner and no unforeseen complication arise
  3. all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  4. no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.

Extra fees may be quoted if any of the following apply to your case:

  • first registration of title
  • whether a mortgage or not, or Islamic mortgage
  • in purchase cases, whether primary residence, buy to let or second/holiday home
  • multiple owners
  • shared ownership scheme
  • using a help to buy scheme, and whether it is an equity loan or ISA
  • purchase under right to buy
  • purchase at auction
  • property has been repossessed
  • you are remortgaging with Paragon Bank
  • you wish to transfer the title to take off or include other names on completion (transfer of equity)