Remortgages - Frequently Asked Questions

How long will it take to complete my transaction?

This is usually the first question which is asked and is difficult to answer as all transactions are different.

A usual estimate for a remortgage would be 3-4 weeks.

We will do what we can to complete your transaction as quickly as possible.

How do you keep me informed?

We will endeavour to keep you informed at all stages of the progress of your transaction.

If at any time you have any queries then please do not hesitate to telephone or email your conveyancer. Their contact details will be contained within your initial letter.

Why do I have to provide my identification documents?

We are required under Money Laundering Regulations to verify your identity to guard against money laundering and fraud.

Where you are purchasing with a mortgage we are also required to verify identity as part of our instructions.

The Land Registry also require us to verify identity.

When will I receive the balance money from my remortgage?

Money will be transferred on the day of completion.

We can transfer the money direct to your bank account (subject to payment of a bank transfer fee) or we can pay you by cheque.

What happens on completion?

When we have finalised a completion date we will prepare a completion statement and advise you whether we require any funds from you to complete.

We will obtain a redemption figure for your existing account.

If we require any funds from you to complete these will need to be in our account in cleared funds no later than the day before completion.

Who will pay off my mortgage?

When a completion date is agreed we will obtain a redemption statement. Provided there is no shortfall (where the proceeds of a sale/remortgage will not cover the redemption figure) we will arrange for the mortgage to be repaid on completion.

When should I stop my direct debit payments for my current mortgage?

You should not stop your direct debit payments until after we advise you that the transaction has completed.

Under the terms of your mortgage you have covenanted to pay up to that date. Any redemption figures which we have based our completion statement on will take into account payments which are due up to the redemption date.

If for any reason there has been any overpayment on your mortgage then your lender will be required to account to you for the balance following completion.

What is the difference between registered and unregistered land?

Since 1925 there has been a gradual process of Land Registration in the UK.

The majority of residential properties are now registered at the Land Registry which means that we can obtain copies of the deeds online. However a minority of properties which have not been sold for some time are still unregistered. These properties will have paper deeds which may be held by a mortgage lender, solicitors or by the property owner. For these properties the deeds will need to be obtained and will be submitted to the Land Registry for compulsory registration on completion of the transaction.

What is the difference between freehold and leasehold properties?

Broadly speaking the majority of houses are sold freehold and the majority of flats are sold leasehold.

The freehold of a property is the ownership of the land itself.

If you are purchasing a residential leasehold property then you will become the tenant of the property under  a new lease or you will purchase the remainder of an existing lease. The Landlord of this lease will own the freehold.

These leases will be long term. They will have been granted originally for a term which could be anything from 99 to 999 years.

In the case of flats it is usual for title to be leasehold as this allows the Landlord to maintain responsibility for the building as a whole.

What is a Transfer of Equity?

Sometimes when a property is remortgage it is also necessary to carry out a “Transfer of Equity”. This will be necessary where the names of the registered owners of the property differs from the names on the new mortgage.

A Transfer of Equity is merely the process of adding or removing someone’s name from the legal title.

Why do people who will occupy the property have to sign an occupier’s consent form?

This will usually be a requirement where there is a mortgage and there will be adult occupiers of the property who are not owners of the property.

This will be a requirement of your lender as it is possible for occupiers to obtain rights in a  property. By signing the consent they are confirming that if you default on the mortgage they will vacate the property. They may be required to seek independent legal advice before signing the consent.

What happens to my deeds following completion?

Following completion your transaction will be registered at the Land Registry. The Land Registry should keep copies of all necessary documents of title and therefore in the majority of cases anything required for a future sale can be obtained from them.

We will provide you with a copy of the completed Land registry entries following completion. We will also forward to you any original deeds and documents which we receive. You should keep these in a safe place as they may still come in useful for future transactions.

If you would like to discuss a potential matter or would like any further information then please contact one of our team using the details shown on this page.