By Martin Williamson, head of residential property at Latimer Hinks Solicitors

MANY people – who haven’t got the cash readily available to carry out expensive home improvements – see remortgaging their property as an option. What some of them forget, is that various checks and searches will need to be carried out – and that all the legal and financial details will need to be handled correctly, too.

This process, referred to as conveyancing, is the same as you go through when buying a property, and will normally be carried out by a qualified conveyancing professional.

So what is involved in conveyancing for remortgaging?

There are various steps involved in the remortgaging process that a conveyancing solicitor or licensed conveyancer can take care of. These include identity verification, money laundering checks, checking the title deed and carrying out property searches – for example checking for any planning, building control or environmental issues affecting your property. A new mortgage lender will need to see evidence of these checks before releasing funds.

The conveyancer will give the existing mortgage lender notice that the intention is to pay off the outstanding balance on the mortgage, and ask for a redemption statement which details how much is owed, plus any penalties, exit fees or other costs for early repayment.

When the new mortgage lender has carried out a valuation of the property, they will make a formal remortgage offer and send a copy of this to both the property owner and the conveyancer. The conveyancer will talk through the details of this offer with the owner to make sure it’s clear what is being agreed to.

When the funds are ready to be transferred, these will be sent to the chosen conveyancing professional who will then use them to pay off the old mortgage and any fees, depositing any balance left over into a nominated account.

Once the old mortgage lender confirms that the previous mortgage is paid off, the solicitor or licensed conveyancer will contact the Land Registry and have them update the title deed for the property with details of the new lender.

The conveyancing process for remortgaging a leasehold property involves a few additional steps which a conveyancing solicitor or licensed conveyancer can assist with.

Firstly, they will need to check that the length of time remaining on the lease meets the new mortgage lender’s requirements.

Many lenders will be reluctant to offer a mortgage on a leasehold property with 80 years or less left on the lease.

The conveyancer will also need to collect details of service charges and ground rent from the landlord or agents, as well as a copy of the property’s buildings insurance documents.

A copy of the lease will need to be provided to the new mortgage lender. If a copy of the lease is not available one can be requested from the Land Registry.

Unfortunately, remortgaging your home isn’t as simple as approaching a lender for the money – there is a lot to take into consideration, so seeking professional advice before making any decisions might be the best option.

Please note: This article is intended as guidance only and does not constitute advice, financial or otherwise. No responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by Latimer Hinks.