The precise stages involved in the process of mortgaging or re-mortgaging a property vary according to the circumstances.
Our fees cover all of the work required to complete the mortgage or re-mortgage a property, including dealing with the registration at the Land Registry.
The precise stages involved in the process of mortgages and re-mortgages, included in your fixed fee, are:
- Take your instructions and give you initial advice
- Obtaining evidence of each buyer’s evidence of identity and address;
- Checking the title
- Carry out searches
- Dealing with any lenders
- Receive and advise on contract documents
- Go through conditions of mortgage offer with you
- Repaying any mortgage
- One telegraphic transfer fee of £25.00 + VAT (£5.00) Total £30.00
- Deal with application for registration at Land Registry
Potential Additional Fees
The fixed fees we have outlined above is based on a standard freehold property transaction. Occasionally, due to the nature of the transaction or unexpected complexities, it is necessary for us to charge an additional fixed fee to cover the extra work involved. This may include one or more of the following:
Leasehold House: £50.00 + VAT (£10.00) Total £60.00 – this will cover the additional work involved in communicating with your landlord, the management company or their agents.
Leasehold flats: £150.00 + VAT (£30.00) Total £180.00 – this will cover the additional work involved in communicating with your landlord, the management company or their agents.
Unregistered Title: £50.00 + VAT (£10.00) Total £60.00 – It is a requirement that all property purchases or re-mortgages are registered with HM Land Registry. If the property you are buying or mortgaging has not previously been registered, we charge an additional fee for this.
Help to Buy ISA: £50.00 + VAT (£10.00) Total £60.00 – where there is an existing or new Help to Buy ISA we charge an additional fee to cover the work involved in communicating with the Help to Buy Agency.
Help to Buy Scheme: £175.00 + VAT (£35.00) Total £210.00 – where there is an existing or proposed loan using the Help to Buy Scheme we charge an additional fee to cover the work involved in communicating with the Help to Buy Agency.
Shared Ownership: £275.00 + VAT (£55.00) Total £330.00 – if the property you are buying is part of a shared ownership scheme we charge an additional fee to cover our communications with the Housing Association or their solicitors.
Declaration of Trust (non-bespoke): £75.00 + VAT (£15.00) Total £90.00 – Where you require an agreement to protect your interest or share in a property you are buying, we charge an additional fee to prepare, complete and register the documentation. There may also be an additional Land Registry fee to pay as outlined below.
Declaration of Trust (bespoke): £400.00 + VAT (£80.00) Total £480.00 – Where you require a bespoke agreement to protect your interest or share in a property you are buying, we charge an additional fee to prepare, complete and register the documentation. There may also be an additional Land Registry fee to pay as outlined below.
Insurance Indemnity Policy: £50.00 + VAT (£10.00) Total £60.00 – If a policy is required we charge an additional fee to obtain and advise you on the terms of the policy. This cost is in addition to the cost of the policy premium.
Mortgage Administration fee: £25.00 + VAT (£5.00) Total £30.00 – this is to cover the additional work involved in liaising with your lender and obtaining the mortgage offer through the lender’s portal.
Consent to Mortgage: £100.00 + VAT (£20.00) Total £120.00 – if you are purchasing a property jointly but only one person is taking out a mortgage, the lender will often require us to obtain the consent of the other purchaser. This fee is to cover our work in contacting and obtaining the consent of the other joint purchaser.
Our fees highlighted above are based on the following assumptions:
– This is a standard 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
– 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
– No indemnity policies are required. The additional fees outline above will apply if indemnity policies are required.
Disbursements are costs related to your matter that are payable to third parties, such as search fees.
These can cover:
Searches – Mortgage lenders require us to carry out searches which are appropriate to the particular property. The search facility will indicate which searches are appropriate taking into account the location of the property and any unusual feature. The searches covered by the fee estimate in the conveyancing quote calculator are usually satisfactory for the majority of mortgages and re-mortgages. However, additional searches may be required depending on whether there are any unusual features in either the location of or the actual property itself.
Land Registry Registration Fee
This fee is set by the Government and is based on the value of the property you are purchasing. You can calculate the fee here: HM Land Registry: Registration Services fees – GOV.UK (www.gov.uk). Please note that if the property has not been registered previously, the fee will be higher.
Indemnity Policy Premium
If a risk has been identified with the property, you may need to obtain an indemnity policy if the seller doesn’t accept responsibility for payment. The premiums vary according to the type and extent of the risk involved. We will obtain a quote and advise you separately regarding this.
If you are mortgaging or re-mortgaging a leasehold property, there will be additional third-party costs which are set out in the lease. We have highlighted the usual fees below but please note that this list is not exhaustive and will depend on the terms of the lease. The fees vary from property to property and can, on occasion, be significantly more than the ranges given below. Once we have seen the lease documents, we will advise you of the specific costs involved.
Notice of Charge fee (if the property is to be mortgaged) – estimated at between £50.00 – £200.00 exc VAT. In total £60.00 – £240.00 inc VAT.
Deed of Covenant fee – this is a fee that is set by the management company. It is usually between £50 – £300 exc VAT. In total £60.00 – £360.00 inc VAT.
Certificate of Compliance fee – this is required on completion and is usually between £50 – £200 exc VAT. In total £60.00 – £240.00 inc VAT.
Sometimes a referral fee is paid to a third party for instance, an estate agent, for introducing your business to us. The fees are usually between £100.00 – £150.00 + VAT. This is not treated as an additional cost to you and we do not require you to pay us this additional amount.
Example of the Total Cost of a Typical Freehold Mortgage or Re-Mortgage
The following is an example of a typical freehold re-mortgage of £180,000.
Legal fee: £745.00
Electronic Money transfer fee: £25.00
Online Identity fee: £24
Official copies: £6
Search indemnity (estimate): £20
Priority search: £3
Bankruptcy search: £2.00
HM Land Registry fee: £30 VAT is not due on this disbursement
How Long Will my Mortgage or Re-Mortgage Take?
Every transaction is different, so it’s hard to pinpoint how long the process can take. A typical mortgage or re-mortgage takes approximate 4-12 weeks but could be longer depending on a number of factors. We understand how important it is to resolve property matters quickly, that is why our expert property conveyancing solicitors will always endeavour to complete your transaction as soon as possible.
Overview of the process – Key stages
Getting a mortgage can be a daunting task, due to the range of mortgages available to choose from. Our mortgage solicitors have put together step-by-step guidance on the mortgage process:
- Get Pre-Approval
You need to work out which kind of mortgage is best for you, how much you can afford to pay and obtain a pre-approval for this loan.
- Find a Property
A lot of people start looking for properties before they are pre-approved for a mortgage, and perhaps before they are thinking of buying a home. Once you’ve found a suitable property, you will need to put in an offer. Your estate agent will be able to help you do this.
- Apply for a Mortgage
You are ready to apply for a mortgage, and you will need to approach a mortgage lender. We recommend going back to the one that gave you pre-approval, but you can shop around to make sure you get the best deal.
- Complete Loan Processing
The lenders will pull together all the information you have provided into a loan estimate which is a document which presents the home loan information in an easy-to-read format.
- Go Through the Underwriting Process
Your application will then be assessed by underwriters who are the key decision-makers in the mortgage approval process and are the people who will give the final approval.
- Close on the Property
If your mortgage application is approved, it’s now time for a closing meeting. It typically takes 30–45 days to close on a house, depending on how long it takes to get a home inspection, and whether you are pre-approved for a mortgage.
Stages of the Re-Mortgage Process
Re-mortgaging is the process of switching from one mortgage supplier to another, and includes the following process:
- Review your Existing Mortgage & Terms
Your conveyancer will ask for proof of ID and gather your current mortgage details, in particular a redemption statement, which tells them what amount is outstanding, and whether there are any early redemption or exit fees. If your property is leasehold, the conveyancer will also check the terms of the lease to make sure it is compliant with your new lender’s requirements.
- Property Searches
Some lenders may want you to conduct searches on your property which can make the transaction slower and more costly. In either case, your conveyancer will take care of the process.
- Review the Property Valuation
Your new mortgage lender will value your property and provide you and your conveyancer with a copy of the document. Your conveyancer will then check through all the fine print and terms and conditions of your mortgage offer and raise any issues.
- Sign in the Re-mortgage Offer
Once you are happy with the terms of your re-mortgage, your conveyancer will ask you to sign the new mortgage deed. On the day the funds are received from your new mortgage, your conveyancer will use these to pay off your existing mortgage. If any funds are due back, your conveyancer will send this back to you.
- Registering the Changes with the Land Registry
Once confirmation is received that your old mortgage is paid, your conveyancer will update the Land Registry that a re-mortgage has taken place.