remortgage with Transfer of equity

ruudy

Hello. I'm in the process of looking at remortgaging. When doing do i will be needing a transfer of equity to switch ownership into my sole ownership (hopefully with no resistance).

What i was wondering is how exactly does this process work and how am i best doing it?

For example, a lot of lenders offer a free legal service, however i note that it doesnt include for a transfer of equity.

Would it be possible to use the lenders free services in part and a local solicitors services to undertake the rest ? Or does it just get messy that way?

Just looking to get how this bit works straight in my head before i proceed.

Thanks all.

hampster

You wont get free legals for transfer of equity we charge £320 but the rest of the remortgage is free!
Hope this helps

Thrugelmir

Solicitor respresents both you and the lender. So easier and cheaper if you use a panel solicitor who is close to you.

ruudy

hampster wrote: »

You wont get free legals for transfer of equity we charge £320 but the rest of the remortgage is free!
Hope this helps

Thrugelmir wrote: »

Solicitor respresents both you and the lender. So easier and cheaper if you use a panel solicitor who is close to you.

Thanks for the help guys. Apologies for this and i might be being stupid but i still don't quite understand it fully.

If the lender states legal fees are free but they dont cover transfer of equity. By getting my own solicitor instead of a solicitor provided by the lenders, does this mean the lender pays my solicitor for the basic legal services (making that part free for me) while i pay my solicitor for the transfer of equity part?

Thanks again

kingstreet

No, the lender's solicitor does all the work. You simply pay the additional transfer of equity fee for them to act for you too.

Alternatively, you could forego a free legals deal and take a c£250 cashback deal and pay the difference that way. You keep control of the remortgage and the TofE, but it may be a bit more expensive.

ruudy

kingstreet wrote: »

No, the lender's solicitor does all the work. You simply pay the additional transfer of equity fee for them to act for you too.

Alternatively, you could forego a free legals deal and take a c£250 cashback deal and pay the difference that way. You keep control of the remortgage and the TofE, but it may be a bit more expensive.

Okay, so the easiest and least expensive way is to just go to the lender and ask them for these additional services for the additional fee? No need at all for me to use my own solicitor?

Will all paperwork for transfer of equity to be signed by other named person (ex) be sent to them in the post?

As noted in my very first post my property value is approx 100k, looking for an 85k mortgage and current mortgage is 88k. Im looking to pay 3k savings to solicitor when setting up new mortgage. I dont want to pay towards existing mortgage in case of potential issues with ex having a claim to it should they get funny.

Just wanting to be sure that lender solicitor can suitably deal with this situation in my best interests.

Thrugelmir

ruudy wrote: »

Just wanting to be sure that lender solicitor can suitably deal with this situation in my best interests.

The solicitor will be independent of the lender. Being a panel solicitor means that they are approved to handle work on behalf of the lender.

Find out what options you have. Then make enquiries locally for recommendations. Go in and discuss your issues before making a final decision if it gives you comfort.

ruudy

Thrugelmir wrote: »

The solicitor will be independent of the lender. Being a panel solicitor means that they are approved to handle work on behalf of the lender.

Find out what options you have. Then make enquiries locally for recommendations. Go in and discuss your issues before making a final decision if it gives you comfort.

So a panel solicitor will be someone local to me who is approved by lender to do this? So i just need to discuss with the lender as to which solicitors are approved for this and i can then arrange a meeting with that solicitor.

Basically i'm just looking for piece of mind. It would be nice to know that the one solicitor is going to handle everything for me from closing out/redeeming current joint mortgage to transfer of equity into new mortgage in my name whilst making use of any free/basic legal services offered by the lender.

If this is the case then i'm quite happy.

Foxy-Stoat_3

I would be completing the Transfer of Equity first, once that has been completed then you can re-negotiate your mortgage and make over payments.

Whats your current interest rate?

StuC75

Are you staying with the same lender, or remortgaging elsewhere?

The Ex will need there own solicitor in this to ensure there interests are covered and that all paperwork is suitably witnessed - they will also advise the ex on what they are signing 'over' and negotiations upon any settlement they receive.

In this case the solicitor would charge you extra for the 'negotiations' that are needed to have the ex agree through there solicitor for the terms under which you are effectively remortgaging - or buying the property off You and the Ex..

When I went through this last year - I found that it was more simpler to remortgage with the current lender.. Especially as I only needed them to value at the purchase price so easier to demonstrate the available equity in the house, rather than trying to prove a higher valuation which the ex may have wanted a payout from..

ruudy

Oh dear. I'm finding this a lot more complicated than i realised.

This is my current situation 4.5% SVR, 88k joint mortgage, house value approx 100k, have about 6-7k savings. Earn 32k per year.

Want to change mortgage to an 85k mortgage in my own name. Have seen various suitable mortgages around 3-3.5% range.

Really just want to know the best, easiest and cost effective route to making this switch?

I actually dont know how TOE works, the stages etc so thats where i'm struggling here. I thought it was just as simple as solicitor redeeming old mortgage, arranging change of title deeds (while obviously notifying ex etc) and taking out new mortgage on it in my sole name.

Is it a lot more complex than that?