What is a Leasehold Property
A lease is essentially a legal document granting a right to occupy and use property for a fixed term, subject to rights and obligations. In long residential leasehold, the lease creates a proprietary leasehold interest as well as contractual obligations (including, where applicable, ground rent and service charge).
Remortgage
Remortgaging a property occurs when you decide to move your mortgage on your existing property from one lender to another. Your new mortgage will replace your old one. You may want to remortgage if you are coming to the end of your existing mortgage deal, searching for a better deal that suits your needs or planning to borrow more money against your property. Whatever your reason for remortgaging, our Remortgage Solicitors have the expertise to assist and guide you through the whole process.
Leasehold flat remortgage
When remortgaging a leasehold property, this comes with its own set of considerations. Unlike freehold properties, leasehold properties require additional information and factors a borrower must consider. In this section, we will reflect what you as a borrower require to provide your conveyancer for your remortgage process to allow a streamlined process.
It is always important to understand the structure when owning a leasehold property. A freehold property entails a property built on the land which is owned by the property owner. On the other hand, the property owner holds a leasehold interest in the property but not the land it is built on. Bearing this in mind, for your leasehold remortgage, your conveyancer is required to investigate the title of the property including the ground rent and service charge levels, lease term, management company and/or freeholder’s details, building insurance, building regulations/planning permissions.
What do we require and look out for when remortgaging your leasehold property
- Lease term– The first important element is the number of years remaining on the current lease. Lenders usually have their own set of requirements on the minimum number of years remaining on the lease. They tend to prefer leasehold properties with longer lease terms as shorter leases can decrease the value of the property and create a greater risk. Borrowers should assess the lease years remaining and consider extending the same to allow a good marketable value.
- Ground rent and/or service charge levels– Often leasehold property owners pay ground rent and service charge to the management company/managing agents and freeholders. Lenders usually assess the levels to ensure the borrower can pay this with the mortgage monthly repayments.
- Freeholder and/or management company details– When a remortgage is complete, your conveyancer is required to serve a notice to the freeholder and/or management company to inform them of the new registered charge against the property. We as your solicitors always ensure this is dealt with after completion in accordance with the lease requirements.
- Building’s insurance– Usually for leasehold properties, the freeholders insure the whole block/series of flats. We as your conveyancer are required to see a copy of the building’s insurance policy to ensure this complies with your lender’s requirements.
Read our Blog on mortgage lender requirements when dealing with remortgage of leasehold properties.
Why Re-mortgage?
- Switching Deals or Lenders– Secure a better deal with lower interest rates.
- Flexible Payment Options– Gain flexibility in mortgage payments, including options to overpay, underpay, or take payment holidays. Perhaps you desire the flexibility to skip a payment. Whether transitioning careers, pursuing further education, or embarking on travel adventures, there are mortgages available that offer payment holidays to accommodate life’s transitions.
- Debt Consolidation or Additional Borrowing– Pay off existing debts or borrow more for home improvements.
- Your properties value has increased– If your property’s value has sharply risen since you secured your mortgage, you might now find yourself in a lower loan-to-value bracket, making you eligible for reduced interest rates. While it’s crucial to crunch the numbers, exploring this avenue is undoubtedly worthwhile.
Instant Conveyancing Quote
At Starck Uberoi we are committed to providing you with efficient and clear legal advice. We understand that finding a reliable conveyancer can be a time consuming and difficult task; to make it easier for you, we provide a free, online conveyancing quote calculator to save you time on your search.
Leasehold remortgage process
A leasehold remortgage is a meticulous process that requires the right solicitors to guide you through every step of the way. Our conveyancing process when it comes to remortgaging a leasehold property looks something like this:
- Identity checks– We would initially carry out checks to ensure that you are who you say you are. This usually occurs once you have applied for the remortgage
- Checking source of funds– If you are using your own funds to pay off part of your existing mortgage, we would need to check the source of your funds, in line with Anti-Money Laundering regulations.
- Checking the title deed– We will need to check the title deeds for the property from the Land Registry to make sure that you are the legal owner of the property you want to remortgage and that the leasehold title meets the requirements set out by your new lender.
- Further checks– We would be required to investigate the title of the property, including the ground rent and service charge levels, lease term, management company and/or freeholder’s details, building insurance, building regulations/planning permissions.
- Review the remortgage offer– We shall ensure that the remortgage offer satisfies the mortgage lender’ requirements.
- Apply for searches– Apply for the searches that are set out in your lender’s mortgage offer.
- Completion– Once we are satisfied with the offer and requirements are met, we shall send the mortgage deed to you for signature and complete the remortgage
- Post-completion– After completion, we will register the new mortgage with the Land Registry
Re-Mortgage Quote
You can obtain a 24/7 instant conveyancing quote on our website or by clicking the link, for a competitive quote whether it’s a freehold or leasehold property or held in a limited company.
What is a Cashback Re-Mortgage and benefits of using your own solicitor?
A Cashback Mortgage deal is a mortgage offering that provides you with a cash lump sum, normally between £200-£500 upon the successful remortgaging of your existing property. Upon the drawdown of your mortgage, your lender will transfer the cashback amount directly to us, we will then transfer it to you, ensuring a seamless and secure transaction.
This option allows you to choose your own trusted Solicitor, ensuring that you receive a competitive fee by off-setting our legal fees against the cash back sum together with our personalised attention and open lines of communication throughout the process.
When speed and/or complexities arise, it’s advisable to engage your own solicitor rather than using the “free legals” option often pushed by mortgage brokers who benefit from referral fees and where your work is often undertaken by a “factory” Licensed Conveyancers (as opposed to Solicitors regulated by the Solicitors Regulation Authority).
Having a capable solicitor by your side is as crucial as having a reliable mortgage broker. With our expertise, the majority of remortgage transactions proceed seamlessly and swiftly, with no missed deadlines.
Remortgage after a Bridging Loan
Buying a property with Bridging Loan followed by a remortgage as an exit strategy later on is common amongst property investors. This provides borrowers with a more financially secure situation and also potentially releases equity particularly where the bridging loan was used to cover the cost of renovation. If you have purchased a property using a bridging loan, most lenders require that there has been a minimum of 6 months between registration of title and completion of a re-mortgage.
For more information on Bridging loans please visit Bridging Loan Solicitors.
Recommended Mortgage Brokers
If you need advice on the best mortgage product or even a second opinion, we are happy to recommend a few mortgage brokers that we work with. Please feel free to call us on 0208 8406640 to discuss.
Expert Advice on Re-mortgaging
Starck Uberoi Solicitors can provide knowledgeable advice to help you decide if re-mortgaging is the right option for you, ensuring you make an informed decision aligned with your financial goals.
Before committing to a re-mortgage, assess the terms of your current mortgage to determine any early repayment fees. Compare the costs of switching deals with the potential savings to decide if re-mortgaging is financially beneficial.
Mortgage Lender Panels
Trusted Residential Conveyancing
We’re a six-partner practice accredited by the Law Society’s Conveyancing Quality Scheme (CQS) with £3 million professional indemnity insurance. Our quality service is recognised by our admission onto the residential conveyancing panels of major mortgage lenders, including bridging loan specialists.
Why Choose Starck Uberoi Solicitors?
Not only do you need a solicitor to remortgage, but you will also require one that is approved by your lender.
Choosing Starck Uberoi Solicitors for your re-mortgage is a decision backed by a wealth of advantages. Our commitment to streamlined and efficient conveyancing services ensures a hassle-free experience throughout the re-mortgaging process.
At Starck Uberoi Solicitors, we offer a comprehensive range of services with a dedicated and proactive approach to meet your legal needs. As a six-partner practice, we hold accreditation with the Law Society Conveyancing Quality Scheme (CQS) and are part of the conveyancing panels for major high street lenders such as Barclays, Halifax, HSBC, Nationwide, NatWest, and Santander. To see the full list of lenders we are registered to, please click here Mortgage Lender Panels.
Key Reasons to instruct us:
- Proactive Approach: We take a proactive stance in handling every legal matter. Each client benefits from a dedicated point of contact with a solicitor who works diligently on their behalf.
- Transparent Pricing: Our commitment to transparency is reflected in the comprehensive quotes provided at the outset, ensuring no hidden charges in the process.
- Quick and Efficient: With emphasis on responsiveness and effective communication, we ensure a swift and efficient handling of your case.
- Regular Updates: Stay informed with regular progress updates, direct contact with your solicitor via telephone and email, and receive legal advice tailored to your specific situation.
- Nationwide Assistance: Whether you’re in the country, our conveyancing solicitors are ready to assist you nationwide.
Our solicitors meticulously scrutinise the terms of your new mortgage to ensure they align with your needs and objectives. We uncover any hidden surprises, offering you peace of mind.
Expert Advice on Re-mortgaging
Starck Uberoi Solicitors can provide knowledgeable advice to help you decide if re-mortgaging is the right option for you, ensuring you make an informed decision aligned with your financial goals.
Before committing to a re-mortgage, assess the terms of your current mortgage to determine any early repayment fees. Compare the costs of switching deals with the potential savings to decide if re-mortgaging is financially beneficial
Get in Touch
Contact Starck Uberoi Solicitors today for expert advice on re-mortgaging your home or buy-to-let. Please call us on 020 8840 6640 or email solicitor@starckuberoi.co.uk. With offices in Ealing, Brentford, Richmond, London Belgravia and Canterbury we can help you with your re-mortgage no matter where you are in the country.
FAQs
How much are the solicitors’ fee and what is the remortgage going to cost me?
If you need to pay solicitors’ fees when remortgaging, the amount it will cost will usually depend on the value of your property and how straight forward your remortgage is.
On average, conveyancing fees involved in the legal work to remortgage is around £650 plus VAT. To get an idea of what you will be expected to pay, use our free, Online Conveyancing Quote Calculator.
To get an idea of what you will be expected to pay, use our free, Online Conveyancing Quote Calculator.
How long does conveyancing take when remortgaging?
The remortgage process takes approximately 6-8 weeks to complete. It is generally quicker if you are remortgaging with the same lender. But, be aware, this time period can change and is based on your circumstances and situation.
Are there any other fees I need to be aware of when remortgaging?
There are some other fees and charges that you should be aware of when remortgaging. This includes:
- Early repayment charge
- Deeds release fee
- Valuation fee
- Application fee
- Arrangement fee
- Broker fees
Why Choose Starck Uberoi Solicitors?
No Hidden Costs
Our legal fees are fully transparent and come with no hidden costs. Our fees are presented to you in a comprehensive quote prior to instruction.
24/7 Progression of Your Case
Our online portal will track the progression of your case. You will have full access 24 hours a day, 7 days a week to your case online.
Lender Panels
We are trusted lender panel solicitors on the lender panels for the majority of high street lenders. View the full list of our mortgage lender panels.
Positive Feedback
We have overwhelmingly positive reviews on both Google and Trustpilot. Client satisfaction is our top priority.
CQS Accreditation
Our commitment to excellence is demonstrated by our accreditation to The Law Society’s, Conveyancing Quality Scheme.
SRA Regulated
We are regulated by the Solicitor’s Regulation Authority and are Law Society LEXCEL Accredited.
Convenience
Based in London and Canterbury we can communicate via face to face meetings, email, telephone or video call.
Property Network
We can recommend excellent Chartered Surveyors, financial and tax advisors to ensure a complete professional service.
