Cost of Re-mortgaging
The aim of this section is to help clients have an understanding of what the costs may be for a particular transaction and assist them with making an informed choice about which legal services provider to engage.
The prices quoted here are estimates and intended to be used as a guide only and will dependant on the value of the property. If you would like a tailored quote/estimate that is specific to your exact situation then please contact us by phone or email and we will provide you with a detailed quote of the likely costs involved for your matter. Once this personalised quote has been accepted by you it will be formally confirmed in our client are letter and Terms and Conditions if Business.
Any reference to VAT is calculated at the prevailing standard rate for goods and services, currently 20%.
Our estimates cover all the legal work* required to complete the remortgage of your property. You will also have to cover any recharges and disbursements we pay on your behalf. Recharges and disbursements are costs related to your transaction that are payable to third parties (i.e. HM Land Registry Information Services and search providers) during your purchase. Typical recharges and disbursements are listed under a separate heading below.
This work includes dealing with the procurement, review and basic reporting of title information, procurement of Land Registry Official Copy Entries and title plan, redeeming the current mortgage, sending any net funds to you, and registering the new mortgage at the Land Registry.
Fees (including supplemental fees most commonly encountered in remortgage transactions)
Please note that this is not an exhaustive list, and other fees may be applicable to the purchase of your property, depending on circumstances.
| Item | Fee (plus VAT at current rate of 20%) |
|---|---|
| Legal fees, depending on the value of the property | £750 - £1500 plus VAT |
| Supplemental fees most commonly encountered | Please note that this is not an exhaustive list, and other fees may be levied depending on circumstances. The list below details the activities and fees most encountered on a purchase. |
| Leasehold property supplemental fee | £550 plus VAT |
| Unregistered property supplemental fee | £250.00 plus VAT |
| Acting on behalf of your mortgage lender | £125.00 plus VAT |
| Mortgage discharge fee (first mortgage) | £75 plus VAT |
| Anti-Money Laundering / ID checking fee, per person | £20.00 plus VAT |
| Electronic money transfer fee within the UK (including bank charges) | £35.00 plus VAT |
Non-standard / Additional work – Hourly Rates
There will be occasions when a matter becomes protracted or more complex than originally anticipated. In those circumstances we reserved the right to increase our fee that we charge for the work involved. We will inform you if any unforeseen extra work becomes necessary and let you know in writing the estimated cost of that extra work before incurring extra costs. We will attempt to agree an amended charge with you. If we cannot reach an agreement, we will do extra work and charge you on an hourly basis plus VAT for the work undertaken on your matter to date. Please note our hourly rates set out below.
Depending on the complexity of the transaction or documentation, additional fees may apply at the fee earner’s hourly rate, at the following indicative rates:
| Partner | £205 - 225 plus VAT at current rate of 20% |
|---|---|
| Solicitor | £190.00 plus VAT at current rate of 20% |
| Conveyancer | £125 - 190.00 plus VAT at current rate of 20% |
Please refer to individual staff profiles Our People – Redkite Solicitors for details of individual qualifications and experience.
Supervision
In addition to the lawyer handling the sale, conveyancing transactions are further supervised by a senior member of the team or Head of Department, who has ultimate responsibility for the matter. The supervisor for each transaction is named in the engagement letter that is sent out to clients at the start of the process.
Recharges
We handle the payment of the Recharges (i.e. HM Land Registry Information Service products) on your behalf to ensure a smoother process. Please note that this is not an exhaustive list, and other recharges may be applicable to the re-mortgage of your property, depending on circumstances.
| Search | Original fee excl. VAT | Amount including admin fee | VAT | Total amount including admin fee & VAT |
|---|---|---|---|---|
| Search of the Index Map | £8.00 | £9.50 | £1.90 | £11.40 |
| Search of Whole (OS1) | £7.00 | £8.50 | £1.70 | £10.20 |
| Search of Part (OS2) | £7.00 | £8.50 | £1.70 | £10.20 |
| Title Plan | £7.00 | £8.50 | £1.70 | £10.20 |
| Register | £7.00 | £8.50 | £1.70 | £10.20 |
| Document Search | £7.00 | £8.50 | £1.70 | £10.20 |
| Bankruptcy | £6.00 | £7.50 | £1.50 | £9.00 |
| AP1 (no admin fee applies) | £5.00 | £6.00 | £6.00 |
Typically 3 documents are required from HM Land Registry - £30.60 inclusive of VAT
Please note that the AP1 fee is for processing the Land Registration at the end of completion. This does not incur an admin fee.
Disbursements
We handle the payment of the disbursements on your behalf to ensure a smoother process. Please note that this is not an exhaustive list, and other disbursements may be applicable to the purchase of your property, depending on circumstances.
| Item | Fee (including VAT at current rate of 20%) |
|---|---|
| Local Search | Variable (depending on location of property and whether your new lender requires searches to be carried out) |
| Drainage and Water Search | Variable as above |
| Other relevant searches (e.g. Mining, Environmental) | Variable as above, typically £48 – £84 |
Additional Disbursements – LEASHOLD PROPERTY
| Item | Fee (including VAT at current rate of 20%) |
|---|---|
| Notice of Charge fee (if the property is to be mortgaged) | This fee is set out in the lease. Often the fee is between £60 – £240 |
| Certificate of Compliance fee | Confirmed upon receipt of the lease, and can range between £60 and £600 |
The Land Registry Fees applicable to your transaction can be calculated using the following link https://fee-calculator.landregistry.gov.uk/
How long will my remortgage take?
How long it will take from your new mortgage offer being received by us until we are able to draw down the mortgage advance will depend on several factors. The average process takes between 3-9 weeks.
It can be quicker or slower, depending on the parties in the chain. For example, if your new Lender does not require searches to be carried out and there are no issues with the title to your property it could take 3 weeks. However, if you are mortgaging a leasehold property and/ or your new Lender requires searches, this can take significantly longer, between 6 and 9 weeks.
Stages of the process
The precise stages involved in a remortgage vary according to the circumstances. However, the items below summarise the main points:
- Take your instructions and give you initial advice and an estimate of our fees.
- Verify your identification and address, complete client onboarding and mandatory regulatory client and matter risk assessments. The client and risk assessments are reviewed at regular points throughout and at the end of the transaction.
- Receive and advise on new mortgage documents
- Carry out searches if necessary or obtain a search indemnity insurance quote should the lender agree to the same.
- Obtain further planning documentation if required
- Make any necessary enquiries if there are title issues
- Give you advice on all documents and information received
- Go through conditions of mortgage offer with you
- Send the new Mortgage Deed to you for signature
- Obtain a redemption figure from your current Lender to repay your existing mortgage (if applicable)
- Agree completion date (date on which your old mortgage is redeemed, and your new mortgage comes into force)
- Arrange for all monies needed to be received from your new lender (and from you if applicable) and sent to your old lender
- Send any surplus funds to you (if applicable)
- Deal with application to remove your old mortgage (if applicable) and register your new mortgage at Land Registry
* Our fee assumes that:
- This is a standard transaction and that no unforeseen matters arise including for example (but not limited to) a defect in title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction.
- In the case of a leasehold property, the remortgage does not involve the grant of a new lease.
- All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.
- No indemnity insurance policies are required for title defects. Additional disbursements may apply if indemnity insurance policies are required, our fees typically arrange from £35.00 - £100.00 plus VAT (levied at the current prevailing rate of 20%) for putting these in place, depending on the complexity of the title defect.
