People remortgage for many reasons – to reduce monthly repayments, to release equity or to consolidate debts. Sometimes, you will need a remortgage solicitor to oversee the legal elements of this and ensure that everything is in order. Here’s what you need to know.
Why Do I Need A Remortgage Solicitor?
If you are doing a simple remortgage with your current lender, where you move to a new deal or new rate, this is usually a simple product transfer and you won’t need a solicitor. Otherwise, you will need one. There are several steps to the conveyancing process for remortgaging a property:
- ID Check – The solicitor will need to verify your identity and the identity of anyone else named on the mortgage and property deeds.
- Checking Funds – If you’re paying off part of your mortgage, it is a legal requirement for the solicitor to check the source of your funds, to prevent money laundering. This could be evidenced by documents such as bank statements, letters from an executor or copies of share releases.
- Land Registry Review – The solicitor will order the title registry documents for your home from HM Land Registry. They will then check that you are the legal owner of the property you are remortgaging, and they will look for any restrictions and charges that would mean other parties have the right to benefit from the sale of the property.
- Examine Mortgage Offer – The mortgage offer will provide details of what the solicitor needs to do to satisfy the lender’s requirements. Each lender’s criteria will vary. At this point, the solicitor will also request your current mortgage certificate, which will show the outstanding amount left to pay on the mortgage.
- Searches – Unlike when you purchase a property, with a remortgage usually only local authority searches are required (as opposed to environmental, chancel, drainage and water searches). Depending on your lender, an indemnity insurance policy may be taken out instead of the local authority search – this is usually cheaper and quicker. Your solicitor will also need to carry out an OS1 search and a bankruptcy check.
- Completion – Your solicitor will need to send a Certificate of Title to your new lender, and request that they release the funds. On receipt of the funds, the remortgage solicitor will repay your current mortgage, settle their bill and, if any money remains, this will be paid to you.
How To Find The Best Remortgage Solicitor
When you’re remortgaging, your bank may offer the services of their solicitor. Make sure that you check their fees if this happens – they can end up being expensive. When choosing your own remortgage solicitor, look for reviews online. These will tell you whether the solicitor is efficient, reasonably priced and knowledgeable.
If you are looking for a remortgage solicitor based in Staffordshire or Cheshire, at Beeston Shenton we are the experts. Our property law team are proficient at the remortgage process, so you can get your new mortgage approved as quickly as possible. Contact us today.