A re-mortgage is the removal of a mortgage from a house and its replacement with another.
What can I expect to pay?
Legal fees for re-mortgages are generally dependent on the value of the mortgage. In some cases, where a remortgage is particularly complex the overall cost may be higher than the estimates listed below. The lawyer dealing with your remortgage will advise you in writing if they anticipate the costs being higher.
VAT is charged at 20%.
| Mortgage Value | Average Fee for Freehold Property | Average Fee for Leasehold Property |
| Up to £500,000 | £900 plus VAT | £1,200 plus VAT |
| Over £500,000 | £1,000 plus VAT | £1,400 plus VAT |
Are there any hidden costs or disbursements?
We will always be upfront with our fees at the start of a transaction. Disbursements are not always known at the outset. For example, you may require an indemnity policy to cover alterations to the property, the exact cost of which will not be known at the outset. However, common disbursements you can expect to pay include:-
| Copies of documents from HM Land Registry (e.g. title registers, title plans etc) | £3.00 per document |
| Official Search of Whole or Part at HM Land Registry | £3.00 per search |
| Land Charges Search at HM Land Registry | £2.00 per name |
| Bank Transfer fees | £30.00 plus VAT per transfer |
| Mortgage Administration Fee (charged by some lenders) | £35.00 plus VAT |
| ID checks (required under the Anti Money Laundering Regulations) | £25.00 plus VAT per person |
| Property Searches (typically Local Authority, Water & Drainage, Environmental | £450 – £550 plus VAT depending on local authority. |
| Registration fee to HM Land Registry | These range from £20 – £305 depending on the value of the mortgage and whether the mortgage covers all or part of the property.
You can find more information about the Land Registry fees and how they are charged here. We will, of course, advise you at the start of your matter how much you can expect to pay. |
| Stamp Duty Land Tax (SDLT) and Welsh Land Transaction Tax (WLTT) | SDLT/WLTT will generally not be payable in the case of a simple re-mortgage. |
What work is included in those costs?
Each transaction is different, but the typical work involved in a re-mortgage includes:-
- Obtaining and reviewing title deeds
- Obtaining a redemption statement from the current lender
- Carrying out searches against the property
- Reporting to the new lender and fulfilling their requirements
- Applying for the release of mortgage funds
- Redeeming the current mortgage and receiving the new mortgage funds
- Remitting any balance to you
- Applying to discharge the old mortgage and register the new mortgage at HM Land Registry
Is there anything not included?
Our costs include all work that is usually required to complete the purchase of a residential property. However, other elements of buying a property (such as arranging for removals or updating your Will) are not included in our services.
Should you require additional legal services (e.g. a Declaration of Trust setting out shares of ownership) these will be charged separately. You can find information about the other legal services we offer in connection with residential property here.
How long will the transaction take?
Many factors will dictate speed including the complexities of a lender’s requirements and the time they take to respond to any queries. If a lender requires a local authority search to be completed, this often takes 3-6 weeks to be processed by the local authority. On average, we would expect a simple re-mortgage transaction to 5 – 10 weeks to complete, but this is not a guarantee.
