You’ve done the hard work: you’ve monitored interest rates, spoken to a mortgage advisor, and found a remortgage deal that could save you a significant amount of money. The new lender has approved your application in principle. But just as you prepare to sign the paperwork, you’re told you need to instruct a conveyancing solicitor.
This is often a point of confusion for homeowners. If you’re not moving house, why is a legal professional needed? It’s a fair question, and the answer lies in understanding who the solicitor is working for and the legal steps required to secure your new mortgage.
Unlike buying or selling a home, a remortgage doesn’t involve exchanging contracts or transferring ownership. However, it is still a significant legal transaction. You are paying off one large, secured loan (your old mortgage) and immediately replacing it with another (your new mortgage).
This process requires a qualified conveyancing solicitor to ensure the transaction is legally sound, your old mortgage is correctly discharged, and your new lender’s interests are protected.
The Main Misconception: Who is the Solicitor Really Working For?
When you bought your home, your conveyancer acted for both you (the buyer) and your mortgage lender. In a remortgage, while you are the one instructing them, the solicitor’s primary duty is to the new lender.
Think of it from the lender’s perspective. They are about to lend you hundreds of thousands of pounds, and their only security is your property. They need a legally binding guarantee that their investment is safe.
Your new lender requires a solicitor to:
- Verify Your Identity: Conduct mandatory anti-money laundering and identity checks.
- Confirm Ownership: Prove that you are the legal owner of the property you are borrowing against.
- Investigate the Title: Ensure the property is a “good and marketable” title. This means checking for any legal issues, unknown debts, or new property covenants that might breach their lending criteria.
- Secure Their Position: Legally ensure that once the old mortgage is paid off, their new mortgage (known as a “legal charge”) will be the first and primary charge registered against your property at the Land Registry.
Without a solicitor to manage this, the lender has no legal protection. Some lenders offer a “free legals” package, but this simply means they are appointing (and paying for) a solicitor from their own panel to do this exact work.
The Remortgage Conveyancing Process: A Step-by-Step Guide
At Gorvins Residential, we manage this process to be as smooth and efficient as possible. While simpler than a house purchase, these legal steps are crucial.
Step 1: Instruction and Initial Checks
Once you instruct us, we will open your file and send out our initial client care pack. This includes conducting the legally required identity and anti-money laundering (AML) checks. We will also ask you to provide the details of your existing mortgage lender and your new mortgage offer.
Step 2: Investigating the Property Title
This is the core legal work. We will obtain an official copy of your Title Deeds from HM Land Registry. We then review this in detail, just as we would for a purchase, to satisfy the new lender’s requirements.
We are checking for:
- Ownership: That the names on the title match the names on the mortgage application.
- Property Type: We confirm the tenure, whether it is freehold or leasehold.
- Issues: We look for any defects, restrictions, or charges on the title that the new lender needs to be aware of.
If your property is leasehold, the process is more complex. We must contact the freeholder or management company to confirm that your ground rent and service charges are paid up to date. Lenders have very strict requirements regarding the length of the remaining lease and the terms of the lease itself, all of which we must verify.
Step 3: Requesting a Redemption Statement
We will formally contact your old lender to request a redemption statement. This is the final “bill” for your existing mortgage. It shows the exact amount of capital, interest, and any exit fees required to pay off the loan completely on a specific date.
Step 4: Conveyancing Searches – Are They Always Needed?
This is one of the most common questions. When you bought your home, you paid for a full set of conveyancing searches (such as Local Authority, Water & Drainage, and Environmental).
For a remortgage, new searches are not always required.
Most lenders will accept “search indemnity insurance” instead. This is a much faster and cheaper one-off policy that protects the lender (not you) against any negative issues that a new search might have revealed.
However, some lenders will insist on new searches if, for example, you have owned the property for a very long time or it is in a specific high-risk area. We will check your new lender’s specific criteria and advise you on the most cost-effective path.
Step 5: The “Completion Day”
Once all legal checks are complete and we have your redemption statement, we will agree on a completion date with you.
On that day, the following happens:
- Funds Arrive: We receive the mortgage funds from your new lender.
- Redemption: We immediately send the exact amount required to your old lender to “redeem” (pay off) your old mortgage.
- Surplus Funds: If you have borrowed extra money as part of your remortgage (e.g., for home improvements), we will send this surplus directly to your bank account.
This process is usually completed in a single morning, with no disruption to you.
Step 6: Post-Completion and Registration
The work isn’t quite finished. After completion, we receive a notification from your old lender confirming their legal charge has been removed.
We then take this, and the new mortgage deed, and apply to HM Land Registry. This final, critical step is to:
- Remove the old lender’s charge from your property title.
- Register the new lender’s legal charge, securing their loan.
Once the Land Registry updates the title, we send a copy to you and your new lender for your records. The process is now complete.
What if I am Changing Ownership at the Same Time?
The process above assumes you are simply switching lenders. If your situation is more complex—for example, you are adding a new partner to the deeds or removing an ex-partner—this is no longer a simple remortgage.
This is known as a Transfer of Equity and is a much more involved legal process that runs alongside the remortgage. It requires a solicitor to draft a formal Transfer Deed and manage the legal interests of all parties, making professional legal guidance essential.
A Smooth Process Protects Your Biggest Asset
While it may seem like an administrative hurdle, the conveyancing process for a remortgage is a vital legal safeguard. It protects your new lender, ensures your old debts are properly settled, and confirms that the title to your most valuable asset is clean and correct.
At Gorvins Residential, our remortgaging specialists handle this process every day. We ensure all the legal requirements are met efficiently so you can start enjoying the benefits of your new mortgage deal with complete peace of mind.
If you are starting your remortgage journey, contact our expert team today to find out how we can help.
