When homeowners consider remortgaging, usually to avail of a more competitive interest rate with another mortgage provider, they should note that this will necessitate the services of a solicitor. Your solicitor has a number of responsibilities and will be able to guide you through the process.
Loan Offer
Once your new lender agrees to issue you a loan offer, they will require you to confirm the details of the solicitor who will act for you during the process. The Loan Offer along with the other mortgage documents are sent to your solicitor. Your solicitor will be able to advise you on the conditions of your loan offer as well as the other documents requiring your signature. These other documents include the Assignment of Life Policy, Deed of Mortgage and the solicitors Undertaking. Your solicitor will be able to talk you through the significance of each of these documents when you meet with them to sign your Loan Offer.
The solicitor’s Undertaking acts is a set of legally enforceable promises provided by your solicitor to your lender, some of which are discussed further below. You are required to sign an authority to your solicitor to provide the Undertaking.
Taking up the Deeds and Title review
Once you have instructed a solicitor, they will arrange for your title deeds to be taken up from your existing mortgage provider. In order to do this you will need to sign a Letter of Authority authorising the release of the deeds to your solicitors office. It is important to get the Letter of Authority signed and sent off as soon as possible as it takes must banks a number of weeks to release the deeds. The Letter of Authority will be prepared by your solicitor and sent to you for signing. Your solicitor will require the wet ink original Authority and will forward to your lender on your behalf.
Once your solicitor receives the title deeds they will then begin their review of the title to ensure there are no issues with it. Your new lender requires that your solicitor certifies the title so that there is no doubt that you have good marketable title to the property. This is required as part of the solicitor’s Undertaking provided to your lender.
Draw down and redemption of your existing mortgage
Your solicitor will request redemption figures for your existing loan. Upon drawdown of your loan funds from your new lender, your solicitor will run searches against you to ensure that no third parties may claim an interest in the property. This may be the case if any judgments have been registered against you or if you have previously been rendered bankrupt. These searches are part of the certification of title process.
Once the searches are clear, your existing loan will be redeemed in full which will trigger the removal of your original lenders charge from the property. Once evidence of removal of the charge has been received, your solicitor will then proceed to register the Deed of Mortgage against the property. The successful registration of the Deed of Mortgage means your new lenders charge is then registered against the property. Your solicitor is required to register your new lenders charge as part of their Undertaking.
Certificate of Title and Title Deeds sent to your new lender
Once your new lenders charge has been registered, evidence of the registration, the solicitor’s certificate of title and the title deeds themselves are forwarded to your new lender where they are held as security for the loan. You will also be required to sign a Family Home Declaration which sets out the family status of you, the owner. This Declaration is forwarded to your lender along with the deeds.
If you have any queries in relation to any of the matters raised in the above article or any property matter generally, do not hesitate to contact one of our property solicitors.
