Residential Re-Mortgage – example
The information below constitutes an example only of the costs and activities involved in a typical re-mortgage of a residential property.
Remortgage of a residential property
When your fixed term mortgage comes to and end (or nears it’s end) you may look to re-mortgage with a new provider. Often ‘free legal’s’ are offered however we would strongly suggest considering independent reviews of those providers to ensure you are going to receive high levels of service.
What we do:
Our estimates cover all work required to re-mortgage your home to a new lender, including but not limited to the following steps:
- Take your instructions and give you initial advice
- Undertake onboarding process, verify ID and source of funds as needed
- Liaise with your existing lender to obtain redemption statements in readiness for completion
- Check your legal title
- Raise enquiries about the property to comply with lender requirements
- Carry out searches if required by the new lender and check once received.
- Give you advice on all documents and information received
- Go through conditions of mortgage offer with you & obtain your signature to the new mortgage deed
- Arrange for Completion and redemption of the existing loan
- Account to you for any proceeds due
- Submit the application for registration at Land Registry
The example provided below is based on a remortgage of a freehold property valued at £200,000, with a remortgage of £100,000.
| ^Example fees for remortgage of £100,000 | |||
| Fee | VAT | Total | |
| Legal Fee | £750.00 | £150.00 | £900.00 |
| Electronic Money Transfer admin fee | £35.00 | £7.00 | £42.00 |
| Electronic ID Verification fee x 1 | £15.00 | £3.00 | £18.00 |
| Disbursements (payments to third party agencies) | |||
| Office Copy Registered Title | £16.00 | £3.20 | £19.20 |
| No Search Insurance if accepted by lender (approx.) | £75.00 | £0.00 | £75.00 |
| Bankruptcy Search per person | £3.00 | £0.60 | £3.60 |
| Land Registry Priority Search (OS1) | £4.00 | £0.80 | £4.80 |
| Land Registry Registration Fee (electronic) | £20.00 | £0.00 | £20.00 |
| TOTAL | £918.00 | £164.60 | £1082.60 |
If you are re-mortgaging leasehold property, further disbursements may apply which we will clarify with you before proceeding.
If the lender does not accept Search Insurance then fees for any required searches will apply. We will be able to advise on this once we receive our copy of the Mortgage Offer.
Our fee assumes that:
- this is a typical remortgage purchase 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 such as a declaration of trust or indemnity insurance
- the transaction is concluded in a timely manner and no unforeseen complications arise
- all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.
How long does a remortgage take?
The average re-mortgage takes approximately 3 to 4 weeks from the date of the Offer being received by us. However, we cannot supply a timescale for the registration of the mortgage with the Land Registry as this is subject to their own processing times. We will not close our file until the completed registration is received.
For more information on re-mortgaging property you can view our Guide to Mortgages here.