There are many reasons why you may be considering re-mortgaging your home and in certain circumstances, it can actually be beneficial such as when you are approaching the end of your fixed rate and wish to find a new mortgage with more favourable rates.
However, whether you are planning on re-mortgaging to reduce your monthly payments, change payment terms or release funds, you will require a solicitor to manage the legal formalities associated with this process. This article provides an insight into why you need to appoint a conveyancing solicitor to manage a re-mortgaging transition.
Why do I need a solicitor to re-mortgage my property?
Lenders will require you to instruct a solicitor to act on their behalf and yours. This also applies to situations where you may be moving from one mortgage deal to another and changing to a new mortgage lender. By instructing a conveyancing solicitor, this ensures all parties are completely informed of the entire re-mortgaging process surrounding the transition and will ensure that contracts are managed accordingly.
A conveyancing solicitor will undertake specific searches as well as obtain legal documents and identify and areas for matters which may impact the property valuation. Properties which are leasehold will require further assistance from a conveyancing solicitor. The process of re-mortaging differs to the buying and selling process and normally requires the completion of the following processes:
- ID Checks
Proof of ID will be requested.
- Existing mortgage
Provision of redemption statement which will detail the amount outstanding as well as any associated early redemption or exit fees and when these will expire.
- Leasehold Property
If your property is leasehold, a conveyancing solicitor will check the terms of the lease and term remaining.
- Property searches
Your new mortgage lender may want searches conducted on your property. A conveyancing solicitor will undertake this task to ensure there are no issues which may negatively impact the value of your property.
- Property valuation
Your new mortgage lender will value your property and provide you with a copy of the valuation within the mortgage offer.
- Terms of mortgage offer
We will review the terms on your mortgage offer.
- Deed
When all parties are satisfied, you can then sign the new mortgage deed.
- Completion
The day your solicitor receives the funds from your new mortgage, they will use these funds to pay off your existing mortgage.
- Remaining funds
If any funds are due back to you, your solicitor will send this balance to you.
- Registration of changes with Land Registry.
Your solicitor will receive confirmation that your former mortgage has been paid and will update Land Registry with the re-mortgage details.
If you are considering re-mortgaging your property and require legal advice, please contact our expert conveyancing solicitors. Call us on 028 7963 2030 or email us info@bernadettemulholland.com.