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Do I need a solicitor to remortgage?

08th April 2019

Are you considering remortgaging your home? If so, you’re likely to need the help of a solicitor. There are several aspects of a remortgage that may need you to seek legal advice. At the very least, a solicitor will make the process much more straightforward. They’re professionals in this field after all.

When Don’t You Need a Solicitor?

If you’re commencing a new rate or deal with your current lender (otherwise known as a ‘product transfer’), you shouldn’t need a solicitor. For example, a solicitor isn’t needed if you’re borrowing more from your current lender to extend your property.

When Do You Need a Solicitor?

If you’re remortgaging your property with a new lender, you will need a solicitor. They’ll be responsible for the legal and administrative work involved in transferring property ownership (otherwise known as conveyancing).

Conveyancing begins once an offer has been made by a lender and subsequently accepted by an owner. You’ll also require a solicitor if you’re adding or removing anyone from a mortgage (referred to as a “transfer of equity”)

A solicitor will have a deft hand with the finer points of a remortgage, and their assistance can certainly increase the likelihood of a mortgage being accepted. Here are just a few examples of how a solicitor will be of valuable service:

Clarifying All the Requirements

The first thing a solicitor will do is assess all the details of your mortgage. They’ll obtain a redemption statement from your current lender. This will outline any remaining payments and fees associated with exiting your mortgage before it’s fully paid.

Scrutinising all the Fine Print

A solicitor will cast an exacting eye over any terms and conditions, whether they relate to the existing lease or the new mortgage offer. If you have a leasehold property, a solicitor will ensure that the terms (such as any remaining time on the lease) satisfy the conditions of the new lender.

A solicitor’s job is to ensure that the remortgaging process is as simple and hassle-free as possible. Therefore they’ll notify you of any potential issues as well as suggesting a solution.

Carrying out all the Necessary Checks

Remortgaging a property involves checks throughout the process. You need to be constantly aware that everything is above board, otherwise valuable time and money could be wasted. Some of the checks a solicitor is required to make include:

  • The valuation of your property
  • Your current leasehold agreement
  • Which charge on your property takes priority on the title
  • Homeowner background checks including bankruptcy checks
  • Any potential Planning Permission issues

Should I remortgage?

Our team of financial experts are available to provide independent mortgage advice. To find out if you should be considering remortgaging at present, read our blog post on this subject.  

Tying Up all the Loose Ends

Once the remortgage has been confirmed, a solicitor manages a new charge being registered against the property. This entails removing the charge instated by the previous lender and is done by updating the title held by the Land Registry.

A solicitor will also be instrumental in the transfer of funds. Once the remortgage has gone through and the associated funds are accessible, your solicitor will ensure that the previous balance is cleared, with you receiving any remaining excess.

If you want to know more about what’s involved in a remortgage, we advise taking a look at our article Remortgage Explained.

IMC stands out amongst the available resources to make sure you know everything involved in remortgaging your property. We have over 20 years of experience and success in the financial sector, providing invaluable advice on mortgages, bespoke to individuals’ unique financial situations. For bespoke mortgage guidance, get in touch with our expert UK team today.

 

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