Re-Mortgage Application After Transfer of Equity

bubby08

Hello,

I have question regarding my remortgage application. Due to the delays with Land Registry. 

My solicitor has advised it could take up 18 Months for the deeds to be updated with the Land Registry, however they have advised that Assent document will suffice as proof of ownership. Will this also be adequate for a remortgage application? And if not what other options do I have.

Best Regards

[Deleted User]

For a remortgage application the names on the application have to match what is showing at LR. 

Are you not doing both the remo and the ToE at the same time? 

bubby08

No I am not. I want to to get the ToE sorted first then apply for the remortgage. But I a, worried that I have to wait until the land registry is updated. Sorry it may also be relevant that there is no existing mortgage on the property.

thanks 

[Deleted User]

the normal way to do it would be to apply for a mortgage in your name at the moment and have the same solicitor manage the ToE and the remortgage. That way they can allow the remo to complete and confirm to the lender that the title is being amended to match.  

If you do them separately then they wont be able to provide this confirmation afaik.  You can ask them to expedite but whether they agree to do it and LR agrees to accept the request is another thing altogether.  

bubby08

So you are saying that the remortgage would come before the change of title, this is a property that has been processed via probate so I wasn’t sure what needed to come first, I wasn’t aware you could submit a mortgage application prior to actually having ownership of the house? Obviously In the case of buying a house it’s different but I thought you needed to technically own a house in order to remortgage? Thank you so much for you advice. I look forward to your reply.

bubby08

bubby08 said:

So you are saying that the remortgage would come before the change of title, this is a property that has been processed via probate so I wasn’t sure what needed to come first, I wasn’t aware you could submit a mortgage application prior to actually having ownership of the house? Obviously In the case of buying a house it’s different but I thought you needed to technically own a house in order to remortgage? Thank you so much for you advice. I look forward to your reply.

Hi any advice would be appreciated as I am about to submit the Assent form.

thank you 

[Deleted User]

If you are submitting a remortgage application then you need to be named as an owner.  You mentioned a transfer of equity which confused me as that is usually when a joint title gets changed to a sole title (or vice versa).  The fact you arent named on the title at all currently means that a remortgage application wont be possible until LR is updated.  

You will have to ask your solicitor to expedite the LR registration but i think you have to meet certain criteria for that so best speak to the solicitor and ask if this is possible

This is just my thoughts obviously,  someone may come along with a different idea

MWT

bubby08 said:

Sorry it may also be relevant that there is no existing mortgage on the property.

So this isn't a remortgage, I suspect this is what has been leading to confusion.

Reading between the lines, you are inheriting a property and wish to use that property as security for a new residential mortgage, is that correct?

bubby08

Yes Deleted_User and MWT 

If I understand you both correctly you are right. 

I am not named on the title deed at all at this moment in time, however a conveyancy solicitor has processed whatever they needed to do and has advised that once they have submitted Assent form that will document some form of evidence owner however it will take up to 18 months to update. My confusion is clearly you can apply for mortgages before the Land Registry or Title deeds are updated because house sales don’t take 18 months to go through.

Once I am the legal owner I intend to mortgage or re-mortgage  half the value of the property for renovation as the place is a mess right now, is this possible?

Thank you so much for help and advice

[Deleted User]

Not without the title in your name. You cant remortgage someone else's property. Your name has to be on the title somewhere either as a joint owner and you are removing someone from the title at the same time or you are coming on to it with someone else.   

Remortgaging a mortgage free property is fine but you have to be named at Land registry as an owner. Unless it is expedited you wont be able to do this.
I did a remortgage for a client who bought the house as cash and the lender issued the offer fine but the remortgage solicitors threw it out until Land Reg was updated with his name.   Had to go back to the original purchase solicitor who expedited the registration and it took about 6 weeks to be done at which point the remortgage solicitors could start work

Couldnt you have just bought the property from the estate? Could have done a concessionary purchase using your share of it as your deposit and once the estate gets the money from selling it then it comes to you anyway as you are the beneficiary.   Maybe a bit messier but would allow you to apply for a mortgage now albeit with a more involved legal process for a purchase than for a remortgage.  

bubby08

Thank you so much JMA 74. 

I didn’t have access to this kind of advice prior to the process, also my deceased family member has put some form stipulation on the property that it can not be sold only inherited so again I am unsure, but think this would rule out your suggested course action in terms of buying it, also not sure if the conveyancy solicitor would back track from where we are currently.

in terms of the land registry is there no way to expedite the update if a mortgage or remortgage application is pending. Also for my own benefit so I don’t confuse people further, what would I call what I am doing, would it be a mortgage or re-mortgage. 

Thanks in advance