Mortgage & remortgage of a residential property
MORTGAGE / RE-MORTGAGE OF A RESIDENTIAL PROPERTY
STEPS INVOLVED :
- Obtaining Title to the property from the Land Registry, and other supporting papers and reviewing these documents, once received.
- Raising searches (if required by the lender) and checking all results
- Obtaining redemption statement from existing lender (if any)
- Attending to all related correspondence, telephone calls, faxes and emails.
- Preparing a report to you on the mortgage offer and conditions.
- Sending mortgage deed to you for execution
- Confirming your instructions for completion
- Preparing a completion statement
- Paying of an existing mortgage loan
- Completing the new mortgage
- Attending to formalities relating to registering the transaction at the Land Registry
ESTIMATED FEES AND DISBURSEMENTS
- Legal fees – Our standard fees for a typical house mortgage or re-mortgage range from around £995 plus VAT for a simple transaction to around £1,500.00 plus VAT for a substantial historic building on unregistered land. There is an extra charge for dealing with a leasehold title ranging from £250.00 plus VAT to £350.00 plus VAT in addition to the standard fee and administration fees for submitting the Land Registry application via the portal. These figures may however vary in cases with special complications. This is why we will always give you an individual cost estimate at the start of the transaction, taking into account the actual features of your mortgage or re-mortgage.
- Approximate Search fees (these vary from one local authority to another) £250
- Electronic money transfer fee £42 (inclusive of VAT)
- Pre-completion searches approximately £7
- Land Registry fee for title documentation £6-£20
- Land Registry fee – see below
On a limited number of transactions, we pay a Referral fee to a third party (normally an estate agent) for referral of that business. – You will be informed of this, if applicable, in our initial correspondence at the outset of the transaction. Additional anticipated Disbursements for Leasehold purchase*
- Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £10.00 plus VAT-£100.00 plus VAT
- Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £30.00 plus VAT-£150.00 plus VAT
*These fees vary from property to property and can on occasion be significantly more than the ranges given above. We can give you an accurate figure once we have sight of your specific documents.
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.
LAND REGISTRY REGISTRATION FEE
You can calculate the amount you will need to pay by using Land Registry’s website.
For example, for a mortgage of a registered freehold residential property at £250,000 with no complications :-
|Electronic Bank Transfer fee inc VAT||
|Land Registry charges for official copies of your title documentation||
|Administration fee re submitting Land Registry application online||
|VAT on Legal Fee||
|Land Registry Fee||
Our estimates do not include any advice about the following aspects:-
- Taxation issues
- Matters relating to survey or the state and condition of the property
- Division of mortgage proceeds between joint owners
- The validity or enforceability of any guarantees relating to work done at the property
- Affordability, suitability or otherwise of any mortgage or loan you are obtaining
- Application of proceeds of mortgage for the purchase of another property which you may be buying with another person
We reserve the ability to charge extra if the transaction becomes out of the ordinary and demands additional time to resolve any problems, these could include :-
- Defective title
- Lack of planning documentation from you
- Dealing with unregistered title
- Dealing with more than one registered title
- Tenanted buy to let property
- Dealing with third party lawyers
- Arranging conveyancing indemnity policy
- Drafting statutory declaration
- Drafting declaration of trust
- Advising adult occupier required to sign consent form for lender
- Shared ownership lease
- Leasehold Properties only – Dealing with deed of variation of Lease
We will always advise you immediately about any complication, and discuss the potential impact on price before any additional charges are incurred.
HOW LONG WILL MY MORTGAGE TAKE?
How long it will take from your application for a mortgage offer being accepted until it can be completed will depend on a number of factors. The average process takes between 4-6 weeks.
It can be quicker or slower, depending on the title, the lender’s requirements or conditions and how quickly the mortgage offer is received. For example, if you are a mortgaging a registered freehold title with a mainstream lender who only requires search indemnity insurance it could take 3 to 4 weeks. However, if you are mortgaging a leasehold property that requires an extension of the lease, this can take significantly longer, between 3 and 4 months. In such, a situation additional charges would apply.
Contact us today without obligation. Call 01803 213251 or complete the enquiry form.