The average cost for a straightforward residential re-mortgage is between £425-£600 plus VAT (currently 20%) on loans up to the value of £600,000. Costs are calculated on a fixed fee basis dependent upon the amount of the loan and the complexity of the transaction.
We have always adopted the policy of informing our clients of the anticipated fees applicable at the outset of their matter and our quotes are “to the penny” to assist our clients with their budgeting from the very outset.
The costs include:-
- Taking your instructions and giving you initial advice
- Obtaining office copies of title and related documents
- Reviewing of title (and lease if leasehold)
- Obtaining prudent searches and review of their result
- Perusing Mortgage Offer and reporting to the client
- Perusing Management Pack (if leasehold)
- Raising questions regarding any alterations at the property and the need for any Planning and Building Regulation Consents, and covenants on the title
- Contacting Management Company if leasehold and raising Landlord enquiries and liaising with Landlord/Managing Agent as necessary
- Dealing with obtaining Planning and Building Regulation Approval documents
- Requesting repayment figure from existing Lender
- Drafting completion statement
- Reporting to the Lender and requesting the new mortgage funds
- Completion of Re-mortgage
- Dealing with the repayment of the existing mortgage
- Serving Notice of Mortgage to Landlord and/or Management Company (if leasehold) together with Notice of Discharge of existing mortgage
- Accounting to client as to the net balance payable
- Registration of Mortgage Deed
Factors that could make the matter more complex, could cause delay and may increase the fixed fee quoted can include, but are not limited to:-
- Time delay in receiving new Mortgage Offer/Instructions from Lender
- Unclear instructions
- Change of Lender
- Defects in the title or Lease which require remedying prior to completion of the re-mortgage
- Issues with the Lease (eg lack of clauses required by all Lenders to comply with their Mortgage Conditions)
- Issues revealed by searches
- Client not being based in the UK
- Use of foreign funds/Anti Money Laundering issues
- Environment issues
- Increased risk
- Rent and/or service charge arrears (if leasehold)
- Delays in obtaining information from Landlord/Managing Agent (if leasehold)
- Issues relating to Management Company and/or Landlord – eg poor management, failure to prepare/file accounts, unusual management company structure
- Drafting of additional documents, such as but not limited to, the following:-
– Statutory Declaration/Statements of Truth/Deeds of Grant of Easements
– Declarations of Trust and
– Deeds of Postponement/Letters of Waiver - Preparation of Declarations of Trust
- Complex freehold titles/head lease structures etc
- Poor service charge accounts
- Landlord/Management Company issues
- Dealing with adverse entries, Notices and Restrictions on the title
- Combining any Transfer of Equity with the re-mortgage
- Dealing with Land Transaction Tax (Wales) or Stamp Duty (England) if transaction combined with Transfer of Equity
- Borrower is a Company and satisfying additional requirements of Lender such as Guarantees and Company Debentures
- Advising Guarantors
- Dealing with unregistered title
- If Lender instructs own Solicitor
- Bridging finance requiring very quick turnaround time
- Obtaining the consent of additional occupants of 17 years and over
Additional Disbursements
The disbursements that may need to be paid in addition to the above costs include:-
- Search fees – £183.50 on average in South Wales (to include Mining Search), but in all other areas subject to quotation dependent on Local Authority
- Land Transaction Tax (Wales) Stamp Duty (England) (will be dependent upon property value). Please visit the HMRC Calculator at https://beta.gov.wales/land-transaction-tax or https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
- Indemnity insurance (if necessary, cost varies dependent on policy)
- Administration charge for electronic transfer of funds (£40 plus VAT for each electronic CHAPS (same day) bank transfer)
- AML client verification check £3.96 for those clients whose identity we cannot verify personally or are not established clients
- Possible Landlord/Lease associated costs
- Fees required to obtain Certificate of Compliance from Landlord to enable registration
- Costs as to share transfer/notice of interest in Management Company limited by guarantee
- Notice of Transfer and Mortgage fees to (both) Managing Agents
- HM Land Registry fees (between £20 and £915 (on scale fees set by HM Land Registry) and based on the amount of the loan
Timescales
Our Team estimates that a typical transaction will take between 2-6 weeks provided the Mortgage Offer is issued promptly and the search results are received without delay. If there is a delay with the Mortgage Offer then this will dictate any longer timescales.
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