Rainer Hughes

REMORTGAGES

Re-mortgage, as distinct from a Second Charge, involves paying off the loan from one mortgage lender with the proceeds of a loan from another mortgage Lender.

Homeowners can re-mortgage their properties for a variety of reasons, releasing equity being one of the most popular options. The equity can be used to make home improvements or towards a deposit to purchase another property.

We often act for clients who release equity from their current properties to purchase investment properties or upsize. 

The second mortgage lender could have different or additional requirements in terms of Searches and Indemnity Insurance particularly where an extension has been built or alterations have been carried out, examples being the installation of double glazing, a new gas boiler or solar heating or the addition of a conservatory.

We are used to dealing with these requirements and are on the panels of all major Banks and Building Societies. We can therefore advise and assist you on all legal aspects of your re-mortgage from our longstanding experience of such matters.

Key Experience

Acted for high-net-worth clients on property transactions in London.

Advised investors on purchase and disposal of their property portfolios.

Advised on commercial lease transactions including acquisition and disposal of shops, restaurants, and offices.

Advised clients on acquisition of a hotel, part of a franchise at West End.

Rainer Hughes are supporting the Solicitors Regulatory Authority’s (SRA) drive to improve transparency in legal services by helping people to understand the services available and the costs involved.

 

We will always give you an individual quote at the start of your transaction, which will take into consideration your personal circumstances and any factors which may affect the transaction.

 

Most of the services we provide are offered on an hourly rate basis and we consider your individual needs and specific requirements when providing you with legal services.  Very rarely do we see a typical case without any complexities or specific requirements.   We have therefore provided estimates of our costs based on a simple conveyancing transaction.

 

Should you have any queries in relation to pricing, please do not hesitate to contact us for further information on 01277 226644 or by email : info@rainerhughes.com

Sale of a Freehold Property

Our legal fees for a typical Sale of a Freehold Property, are based upon the property value. Assuming a simple freehold sale transaction, these fees would range from:

£700.00 + VAT (Total : £840.00) for a property valued at £200,000.00

To:

£2,100.00 + VAT (Total : £2,520.00) for a property valued at £2.5 million.

 

VAT is based on the current rate of 20% but will of course change if the rate is altered.

In addition to the above costs, disbursements will apply.

Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees.  We handle the payment of the disbursements on your behalf to ensure a smooth process.

 

The costs outlined above assume 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
  • the transaction is concluded in a timely manner and no unforeseen complication arise
  • all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  • no indemnity policies are required. Additional fees and disbursements may apply if indemnity policies are required.

Factors that can affect the costs of services we provide include :

  • If the property is a new build, freehold or leasehold
  • If this is the first registration of title (unregistered land)
  • If a mortgage required by the purchaser
  • If the purchase is a buy to let or second/holiday home If their multiple owners
  • If shared ownership schemes apply
  • If you are using a help to buy scheme
  • If the purchase is under right to buy
  • If the property was sold at auction
  • If the property has been repossessed
  • If indemnity insurance is required to address title or other defects If the property a listed building

 

Our services will include:

 

  • Obtaining a copy of the title of your property from the Land Registry, checking the content of the same
  • Taking your instruction in preparing the standard conveyancing protocol forms and documents required by your Buyer’s Solicitor
  • Preparing a contract pack for your Buyer’s Solicitor
  • Dealing with any enquiries raised by your Buyer’s Solicitor
  • Dealing with the transfer and completion of the sale to include the redemption of your mortgage, if any, and remitting the proceeds to you
  • Sending title documents to your Buyer’s Solicitor

 

How long will my Property Sale take?

 

How long it will take from your accepting an offer until completion will depend on a number of factors. The average process takes between 10-16 weeks.

 

It can be quicker or slower, depending on the parties in the chain.  If you are selling a leasehold property that requires an extension of the lease, this can take significantly longer, between 2 and 4 months. In such, a situation additional charges would apply.  A summary of Additional Charges are outlined below:

 

 

Additional Charges

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Leasehold Fee

 

£ 150.00

£ 30.00

 

£180.00
New Build Fee£ 350.00£ 70.00£ 420.00
Help to Buy Scheme Fee£ 150.00£ 30.00£ 180.00
Unregistered Land£ 250.00£ 50.00£ 300.00

 

Stages of the process

 

The precise stages involved in the sale of a residential property vary according to the

circumstances.   We have listed the key stages below :

 

  • Take your instructions and give you initial advice
  • Obtain deeds/title and contact your lender (if any) for a redemption figure
  • Issue contract documents
  • Receive and deal with necessary enquiries from the buyer’s solicitor
  • Send final contract to you for signature
  • Agree completion date (date from which your buyer will own the property)
  • Exchange contracts and notify you that this has happened
  • Complete the sale
  • Deal with payment of any mortgage redemption and estate agents invoice
  • Deal with payment to you of any net sale proceeds

 

 

Below we have provided two examples for the sale of a residential property transactions.

 

Case Study 1 : a simple Residential Property Transaction where an individual is selling a freehold Property with a value of £ 200,000.00

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Legal Fee

 

£ 700.00

£ 140.00

 

£ 840.00

Money transfer Fee

 

£ 30.00£ 6.00£ 36.00
Copy Land Registry Documents (estimated)£ 15.00-£ 15.00
ID CHECK (for one person)£ 6.00-£ 6.00

TOTAL 

(estimated)

£ 751.00£ 146.00£ 897.00

 

Summary of Estimated Conveyancing Charges for Case Study 1

 

Total excluding VAT :  £     751.00

Total VAT Payable :   £     146.00

Estimated Total :       £     897.00

 

VAT is calculated at the current rate of 20% but will of course change if the rate is altered.

 

Case Study 2 : a simple Residential Property Transaction where an individual is selling a freehold Property with a value of £ 2,500,000.00

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Legal Fee

 

£ 2,100.00

£ 420.00

 

£ 2,520.00
Money transfer Fee£ 30.00£ 6.00£ 36.00
Copy Land Registry Documents (estimated)£ 15.00-£ 15.00
ID CHECK (for one person)£ 6.00-£ 6.00

TOTAL 

(estimated )

£ 2,151.00£ 426.00£ 2,577.00

 

Summary of Estimated Conveyancing Charges for Case Study 2

 

Total excluding VAT :  £ 2,151.00

Total VAT Payable :   £    426.00

Estimated Total :       £ 2,577.00

 

VAT is calculated at the current rate of 20% but will of course change if the rate is altered.

 

The fees outlined above are quoted on the basis of the amount of work we anticipate would be involved in the transactions. If there are any difficulties, which involve additional work, over and above the normal transaction then we would discuss the fees with you. Should either transaction prove abortive then fees would be charged on the basis of the amount of work carried out.

 

 Purchase of a freehold Residential Property

Our fees for a typical Purchase, are based upon the property value. Assuming a simple sale transaction, these fees would range from:

£820.00 + VAT (Total : £984.00) for a property valued at £200,000.00

To:

£2,600.00 + VAT (Total : £3,120.00) for a property valued at £2.5 million.

 

VAT is based on the current rate of 20% but will of course change if the rate is altered.

In addition to the above costs, disbursements will apply.

 

Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees.  We handle the payment of the disbursements on your behalf to ensure a smooth process.  The Case Studies we have provided below highlight likely disbursements that you will incur.

 

The costs outlined above assume 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
  • the transaction is concluded in a timely manner and no unforeseen complication arise
  • all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  • no indemnity policies are required. Additional fees and disbursements may apply if indemnity policies are required.

 

Factors that can affect the costs of services we provide include :

  • If the property is a new build, freehold or leasehold
  • If this is the first registration of title (unregistered land)
  • If a mortgage required
  • If the purchase is a buy to let or second/holiday home
  • If there are multiple owners
  • If shared ownership schemes apply
  • If you are using a help to buy scheme
  • If the purchase is under right to buy If the purchase is at auction
  • If the property has been repossessed
  • If indemnity insurance is required to address title or other defects If the property a listed building

 

Our services will include:

 

  • Investigating title to the property, checking for any restrictions and encumbrances affecting the Property
  • Carrying out Local Search, Drainage Search, Environmental Search and Chancel Check Search and any other relevant searches that may be required or necessary and reviewing and reporting to you on the results of same
  • Obtaining relevant planning permissions and reviewing same
  • Agreeing form of Contract and preparing the Transfer
  • Exchanging Contracts and preparing for completion
  • Requesting mortgage monies from your lender and balance to complete from you
  • Final Searches
  • Reporting to you on the matter generally
  • Dealing with payment Stamp Duty Land Tax
  • Registering the property at the Land Registry

 

How long will my house purchase take?

 

How long it will take from your offer being accepted until you can move in to your house will

depend on a number of factors. The average process takes between 8-16 weeks.

It can be quicker or slower, depending on the parties in the chain. For example, if you are a first time buyer, purchasing a new build property with a mortgage in principle, it could take 4-7 week. However, if you are buying a property that requires an extension of the lease, this can take significantly longer, between 2 and 5 months. In such, a situation additional charges would apply.  A summary of Additional Charges are outlined below :

 

Additional Charges

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Leasehold Fee

 

£ 150.00

£ 30.00

 

£ 180.00
New Build Fee£ 200.00

£ 40.00

 

£ 240.00
Help to Buy Scheme Fee£ 200.00

£ 40.00

 

£ 240.00
Help to Buy ISA Free£ 100.00

£ 20.00

 

£ 120.00
Gifted Deposit Fee£ 75.00

£ 15.00

 

£ 90.00
Unregistered Land£ 250.00

£ 50.00

 

£ 300.00

 

Stages of the process

 

The precise stages involved in the purchase of a residential property vary according to the

circumstances. We have listed the key stages below :

 

  • Take your instructions and give you initial advice
  • Check finances are in place to fund purchase and contact lender's solicitors if needed
  • Receive and advise on contract documents
  • Carry out searches
  • Obtain further planning documentation if required
  • Make any necessary enquiries of seller's solicitor
  • Give you advice on all documents and information received
  • Go through conditions of mortgage offer with you
  • Send final contract to you for signature
  • Agree completion date (date from which you own the property)
  • Exchange contracts and notify you that this has happened
  • Arrange for all monies needed to be received from lender and you
  • Complete the purchase
  • Deal with Registration and payment of Stamp Duty/Land Tax
  • Deal with application for registration at Land Registry

 

Case Study 3 : a simple Residential Property Transaction where an individual is purchasing a freehold property with a value of £ 200,000.00

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Legal Fee

 

£ 820.00

£ 164.00

 

£984.00

Money transfer Fee

 

 

£ 30.00£ 6.00£36.00
*Local authority search fee£ 126.97£ 25.39£152.36
*Environmental search fee£ 51.00£ 10.20£61.20
*Drainage and Water search fee£ 58.50£ 11.70£70.20
Stamp duty land tax (standard rate)**£ 0.00-£0.00
Land Registry fee£ 95.00-£95.00
Final Searches (Land Registry)£ 5.00-£5.00
ID CHECK (for one person)£ 6.00-£6.00

TOTAL

(estimated)

 

£1,192.47£217.29£1,409.76

* This figure is based upon searches being obtained within a rural area representing the most common type of instructions we receive.  The actual fee payable is variable dependent on location.

 

**Thresholds for stamp duty

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay. The current SDLT threshold for residential properties is £500,000. This changes on 1 July 2021.

 

Property purchases from 1 July 2021 to 30 September 2021

The SDLT thresholds will be:

  • £250,000 for residential properties
  • £150,000 for non-residential land and properties

The threshold for residential properties will change on 1 October 2021

 

Property purchases from 1 October 2021

The SDLT thresholds will be:

  • £125,000 for residential properties
  • £150,000 for non-residential land and properties

These thresholds are the same as they were before 8 July 2020.

 

 

 

Stamp Duty or Land Tax

 

This depends on your personal circumstances, the purchase price of your property and HMRC rates at the time of your purchase.  Please click here for a HMRC’s website, where you will be able to calculate the amount you will need to pay.

 

Summary of Estimated Conveyancing Charges for Case Study 3

 

Total excluding VAT :  £ 1,192.47

Total VAT Payable :   £     217.29

Estimated Total :       £ 1,409.76

 

 

Case study 4 : an individual is purchasing a property with a value of £ 2,500,000.00

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Legal Fee

 

£ 2,600.00

£ 520.00

 

£3,120.00

Money transfer Fee

 

 

£ 30.00£ 6.00£ 36.00
*Local authority search fee£ 126.97£ 24.74£ 148.42
*Envirosearch fee£ 51.00£ 10.20£ 61.20
*Drainage and Water search fee£ 58.50£ 11.70£70.20
Stamp duty land tax (standard rate)**£ 198,750.00-£198,750.00
Land Registry fee£ 455.00-£ 455.00
Final Searches (Land Registry)£ 5.00-£ 5.00
ID CHECK (for one person)£ 6.00-£ 6.00

TOTAL

 

£202,082.47£572.64£202,651.82

* This figure is based upon searches being obtained within a rural area representing the most common type of instructions we receive.  The actual fee payable is variable dependent on location.

 

**Thresholds for Stamp Duty

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay. The current SDLT threshold for residential properties is £500,000. This changes on 1 July 2021.

 

Property purchases from 1 July 2021 to 30 September 2021

The SDLT thresholds will be:

  • £250,000 for residential properties
  • £150,000 for non-residential land and properties

The threshold for residential properties will change on 1 October 2021

 

Property purchases from 1 October 2021

The SDLT thresholds will be:

  • £125,000 for residential properties
  • £150,000 for non-residential land and properties

These thresholds are the same as they were before 8 July 2020.

 

 

Stamp Duty or Land Tax

 

This depends on your personal circumstances, the purchase price of your property and HMRC rates at the time of your purchase.  Please click here for a HMRC’s website, where you will be able to calculate the amount you will need to pay.

 

Summary of Estimated Conveyancing Charges for Case Study 4

 

Total excluding VAT :  £ 202,082.47

Total VAT Payable :   £         572.64

Estimated Total :       £ 202,651.82

 

Residential Property re-mortgage

 

Our fees for a typical re-mortgage are based upon the property value. The fees would range from:

£550.00 + VAT (Total : £660.00) for a property valued at £200,000.00

 

To:

 

£ 850.00 + VAT (Total : £1,020.00) for a property valued at £2,500,000.00

 

VAT is based on the current rate of 20% but will of course change if the rate is altered.

In addition to the above costs, disbursements will apply.

 

In addition to the above costs, disbursements will apply. Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees.  We handle the payment of the disbursements on your behalf to ensure a smooth process.

 

The costs outlined above assume 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
  • the transaction is concluded in a timely manner and no unforeseen complication arise
  • all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  • no indemnity policies are required. Additional fees and disbursements may apply if indemnity policies are required.

 

Factors that affect the costs of services we provide include :

  • If the property is a leasehold
  • If the property is a second/holiday home and involves multiple ownership
  • If shared ownership schemes apply
  • If you are using a help to buy scheme
  • If the purchase is under right to buy
  • If indemnity insurance is required to address title or other defects If the property a listed building

 

Our services will include:

 

  • Reviewing registered title to check for any restrictions and encumbrances affecting the Property.
  • Obtaining Indemnity Insurance in relation to the Local Search to protect the lender if this is acceptable to them.
  • Obtaining relevant planning permissions and reviewing same.
  • Reporting to your lender on title to the Property, discharging any existing charge.
  • Draw down of the new loan and Redeem existing Mortgage.
  • Registering the new mortgage at the Land Registry.

 

How long will my re-mortgage take?

 

How long it will take from your mortgage offer being accepted will depend on a number of factors. The average process takes between 3-6 weeks. It can be quicker or slower, depending on the various parties involved.

 

Stages of the Process

 

The precise stages involved in the re-mortgage of a Residential property vary according to the circumstances.  We have listed the key stages below :

 

  • Take you initial instructions and give you initial advice.
  • Check your finances are in place to fund the re-mortgage if required.
  • Receive your title deeds.
  • Receive up to date copy of the title from HM Land Registry.
  • Respond to the various searches and enquiries, and check results.
  • Receive mortgage offer from your lender.
  • Send you the mortgage deed to you for signature.
  • Arrange the draw down the new loan.
  • Obtain an up-to-date redemption statement from existing Lender.
  • Provide an account of any balance of funds.
  • Provide a Financial Statement and settle funds due or owed by you.
  • Register and Conduct final Land Registry searches.

 

Below we have provided two examples for the re-mortgage of a residential Property.

 

Case Study 5 :  an individual is re-mortgaging a property with a value of £200,000.00

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Legal Fee

 

£ 550.00

£ 110.00

 

£660.00
Money transfer Fee£ 30.00£ 6.00£ 36.00
*Residential No Search indemnity policy (mortgagee)£ 17.00-£ 17.00
Land Registry fee£ 30.00-£ 30.00
Final Searches (Land Registry)£ 5.00-£ 5.00
ID CHECK (for one person)£ 6.00-£ 6.00

TOTAL 

(estimated)

£638.00£116.00£754.00

* (if applicable) – Some mortgage lenders will require a No Search Indemnity Policy however, we will know more once we receive your mortgage offer and we would discuss this with you.

 

Summary of Conveyancing Charges

 

Total excluding VAT :  £ 638.00

Total VAT Payable :   £ 116.00

Estimated Total:        £ 754.00

 

 

Case Study 6 : an individual is re-mortgaging g a property with a value of £2,500,000.00

 

Service

Fee

(excluding VAT)

 

VAT@20%

Total

(including VAT)

 

Legal Fee

 

£ 1,100.00

£ 220.00

 

£1,320.00
Money transfer Fee£ 30.00£ 6.00£36.00
*Residential No Search indemnity policy (mortgagee)£ 155.00-£155.00
Land Registry fee£ 125.00-£125.00
Final Searches (Land Registry)£5.00-£5.00
ID CHECK (for one person)£ 6.00-£6.00

TOTAL 

(estimated)

 

£1,421.00£226.00£1,647.00

* (if applicable) – Some mortgage lenders will require a No Search Indemnity Policy however, we will know more once we receive your mortgage offer and we would discuss this with you

Summary of Conveyancing Charges

 

Total excluding VAT :  £ 1,421.00

Total VAT Payable :   £    226.00

Total :                       £ 1,647.00

 

Our Property Team 

Our firm has experience of delivering effective and high-quality Conveyancing services.

 

Our team of Property Lawyers have experience in dealing with all types of Residential Property Transactions.  The team is led by Brian Hughes. Brian have over 50 years’ experience in this area.

 

Our team have experience in all aspects of property and we dedicate ourselves to ensuring our knowledge stays up to date, in order to give you the best service possible. They have between 7 and 50 years of experience in the area. We always make sure that junior solicitors and members of staff are supported and supervised appropriately so that the quality of advice is not affected, regardless of who is working on your case.

We also employ paralegals who do much of the day to day work on cases.

Although they are not legally qualified, they have between 2 and 8 years' experience and have received extensive training within our firm and work under the direct supervision of a solicitor with at least 5 years post qualification experience.

 

We have a proven track record in achieving successful outcomes for our clients.

 

 

The team includes:

 

Brian Hughes – Consultant Solicitor

Umut Tarhan - Solicitor

Kerry Webb – Property Executive

Natalie Howes – Paralegal

Lauren Sweeney – Paralegal

Jane Bailey – Secretary

Reed Mansell – Administrative Assistant

 

For further information, please contact us on 01277 – 226644 or email info@rainerhughes.com and we will be happy to assist you.

 

We look forward to assisting you with your Residential Property Matter.