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Pricing – Re-mortgage of a Residential Leasehold Property

Below you will find various pieces of information about what can expect to pay if you instruct us to act for you in respect of the re-mortgage of your leasehold property and what factors might affect the price you then pay. Should you choose to instruct us, a tailored estimate will be provided based on your particular circumstances and the transaction. The figures below do not include any VAT which may be applicable and which will be charged at the prevailing rate at the time that your re-mortgage completes.

Leasehold Re-mortgage CostsAmount (excluding any VAT applicable)
Our basic legal feeRange from £250 and £850* (plus VAT)
Bank Transfer Fee (per mortgage repaid)£30 – £49 (plus VAT)
Electronic Identity Check (per name checked)£10 – £17 (plus VAT)
Anticipated Expenses **
Land Registry Documents (Leasehold Register and Plan, Freehold Register and Plan, Lease)£15 (plus VAT)

£3 per document (plus VAT)

Land Registry Search Costs (OS1)£3 (plus VAT)
Bankruptcy Search Costs (per name searched)£2 (plus VAT)

 

Value of the PropertyOur Fees (excluding VAT)
Up to £250,000£250 – £350
£250,000 – £500,000£350 – £450
£500,000 – £750,000£450 – £550
£750,000 – £1million£550 – £650
£1million – £1.5million£650 – £850

 

* for properties with a value of £1.5million and above, fees will be provided upon request

** not listed in these expenses or included in our legal fees is:

  • The HM Land Registry Registration Fee, which is based on the purchase price of the property
  • A ‘No search’ insurance policy which some lenders may require, and the cost of which varies between insurer and the property in question
  • Charges ordinarily payable to the freeholder/landlord of the property – for example, the costs of notifying the landlord of the new mortgage and getting any consents required

What is included in this price and what factors might affect the price that you have to pay?

The above range of are based of the re-mortgage of an existing residential leasehold property by one or more individuals (as opposed to a company or business partnership) with a title which is already registered at HM Land Registry and with a mortgage from a traditional high street mortgage lender. Most re-mortgages of leasehold property in England and Wales will fall within this category. Our fees include the following work:

  • Setting up your file
  • Checking and processing your instructions including carrying out the identity and anti-money laundering checks that we are required to carry out by law
  • Checking the title deeds
  • Obtaining indemnity insurance in lieu of searches
  • Liaising with your landlord to obtain information about maintenance, service charges, insurance etc.
  • Preparing paperwork for you to sign
  • Liaising with your mortgage lender and ensuring any conditions attached to the release of the mortgage money are satisfied
  • Obtaining redemption statements in respect of any existing mortgages on the property
  • Completing your re-mortgage
  • Ensuring the re-mortgage is registered with HM Land Registry
  • Closing and storing your file in accordance with our data retention policy
  • Keeping you and any relevant third parties updated throughout as appropriate

Additional work may need to be carried out on your re-mortgage which we are not aware of at the outset but which leads to an increase in our fees and/or the third party expenses you have to pay. If any such additional costs arise we will tell you about them as soon as possible. Examples of situations that might lead to an increase in costs include:

  • If the property is in or is being transferred to a company name
  • You are re-mortgaging a share in a property jointly owned by a housing association (shared ownership)
  • The property hasn’t previously been registered at Land Registry
  • You are taking a mortgage from a non- high street lender
  • There are problems with the title deeds
  • The property is currently let or you intend to let it
  • We have to order conveyancing searches (if your lender does not accept insurance)
  • The legal owners of the property are different to those who are taking out the mortgage
  • There is a mortgage on the property that you don’t intend to repay
  • We have to pay a referral fee to the professional who referred you to us

How long will the re-mortgage of the leasehold property take?

How long it will take from your mortgage being agreed until you receive the proceeds will depend on a number of factors. The average process takes between three to four weeks.

It can be quicker or slower, depending on how long it takes for the formal mortgage offer to be issued and whether for example the property is freehold or leasehold. If you are re-mortgaging a leasehold property that requires an extension of the lease, this can take significantly longer, between three and four months. In such a situation, additional charges may apply.

Key Stages of the Re-mortgage Process

The exact stages involved in the re-mortgage of a residential leasehold property vary according to the individual specific circumstances. However, the following are the key stages of a typical re-mortgage:

  • Take your instructions and give you initial advice
  • Obtain copies of the title deeds
  • Review the legal title
  • Obtain amount owing statements from your mortgage lender(s) and check that the new mortgage advance will be sufficient to repay all existing debts
  • Review the mortgage offer and deal with any special conditions
  • Send the mortgage deed to you for signature
  • Agree a completion date (date on which you will receive the re-mortgage proceeds)
  • Complete the re-mortgage
  • Pay off your existing mortgage and obtain discharge documents from the lender
  • Deal with the application for registration at Land Registry
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