There are plenty of reasons one may choose to remortgage. For instance, to lower the monthly mortgage amount, repay the loan in a short period, or reduce the repayment size. Whatever the reason may be, hiring a solicitor is crucial to deal with all the legal work.
But that’s not the only reason to hire them. The process of remortgaging and conveyancing often gets overwhelming, especially for first-time property owners. They might not be well-versed with all the costs as well as legalities involved with the process. Having a professional by your side will help facilitate the entire process. Continue reading to learn more reasons to seek assistance from solicitors.
What Are The Scenarios When You Need Professional Help For Borrowing?
It is noteworthy that you do not need to hire conveyancing solicitors if you are only interested in extending your advance. In short, if you are borrowing more money for your property from your existing lender, no legal charges are involved. The only additional expense you have to bear is repayments.
On the contrary, all the other cases related to property, title, and borrowing require the help of a professional.
Should You Use The Solicitor Provided By Your Lender?
Generally, many lenders provide solicitors to facilitate the entire process. If it is part of your remortgage deal, you might not have a choice from any other professional. However, if you are the one who is paying for the service, it would be better to look out for different options available.
It is noteworthy that not all lenders are associated with conveyancing solicitors. It is suggested to get a Remortgage conveyancing quote from different service providers and select the best one. The professionals will help check all the property and title details, ensuring no delay in conveyancing.
What Are The Duties Of Solicitors During Remortgage?
Conveyancing is often less complex than purchasing a new house. It includes:
- Checking the ID proof to protect the property owner from money laundering.
- Collecting details of the current borrowing from existing lenders and redemption documents. It might also include details about the early repayment fees or exit fees.
- Conducting a bankruptcy check to make sure you have never declared bankruptcy.
- Verification of lease terms to ensure compliance with the new lender’s requirements.
- Conducting property search to calculate the property’s value to issue a formal mortgage offer.
- Reading the fine prints included in the mortgage terms. If there’s an issue, they will raise it, ensuring you only get the ideal deal.
- Once you are happy with the final contract, the professional will get your signature.
- After the beginning of the remortgage process, they will do a priority search at the land registry to ensure everything works out smoothly. It is also performed to check whether there’s any change in the contract.
- Once the remortgage process is complete, the solicitor will pay off the old loan and other fees associated with it and send the remaining balance to you.
To Sum It All Up
The remortgaging process involved legality, which might make the process a bit lengthy. Involving solicitors can help make the process easier, ensuring that you get the right value for your property.
