Remortgage and transfer of equity: how it works

This guide explains how a remortgage and a transfer of equity work with Judge Law: the steps involved, what we need from you and why, and how long each usually takes. A remortgage is when you move your mortgage to a new lender, or borrow more, without moving home. A transfer of equity is when someone is added to, or removed from, the legal ownership of your home.

We do not send stage-by-stage progress emails for these matters, but your conveyancer will keep you updated and tell you when they need anything from you. If a word is unfamiliar, our guide to common property terms explains it.

Remortgaging: step by step

When you remortgage, we act for you and, in most cases, for your new lender too. We make sure the new lender’s conditions are met, repay your old mortgage and register the new one. More information about our service is on our remortgage solicitors page.

1. Instruction. You instruct us, we open your file and we send you our client care letter, which sets out our terms and fees.
2. ID checks. We check the identity of everyone named on the mortgage, through our secure online ID check, which they can complete from home.
3. The lender’s instructions. Your new lender sends us its instructions and a copy of your mortgage offer, and we check the conditions we need to meet.
4. Title and searches. We check the title, the official record of who owns the property. Depending on the lender, we either order searches or arrange search insurance, a one-off insurance policy that the lender may accept instead of searches.
5. Signing the mortgage deed. You sign the mortgage deed, which gives the new lender security over your home. It must be signed in front of a suitable witness.
6. Completion. The new lender sends the money to us, and we use it to repay your old mortgage. If you are borrowing more, we send you the extra money, less any costs shown on your completion statement.
7. Your old lender is repaid. Your old lender confirms the mortgage is repaid, using a form called a DS1.
8. Registration. We apply to HM Land Registry to remove the old lender’s charge and register the new one. A charge is the lender’s legal claim over the property until the mortgage is repaid.

What we need from you, and why

• Your signed client care letter and terms. Our professional rules require us to give you clear information about our terms and costs before we start work.
• Photo ID and proof of address for everyone on the mortgage. The Money Laundering Regulations 2017 and your lender require it, and it protects you from someone borrowing against your home in your name.
• Your current mortgage account details. We need them to obtain the redemption figure, the amount needed to pay off your old mortgage.
• The signed mortgage deed, witnessed correctly. The new lender will not release the money without it, and a wrongly witnessed deed has to be signed again.
• News of any change. Tell us if your circumstances change, or if anyone else lives at the property. Some lenders need anyone aged 17 or over who lives there to sign a form agreeing to the mortgage.

How long a remortgage usually takes

A remortgage usually takes 4 to 6 weeks from the time we receive your lender’s instructions. Delays most often come from the lender, from a slow redemption figure, or from a mortgage deed that needs signing again. If your current deal ends on a particular date, tell us early so we can explain what is realistic.

For more background, read our article on whether you need a solicitor to remortgage.

Transfer of equity: step by step

A transfer of equity changes who owns your home. For example, you may be adding a partner to the title, or removing someone after a separation. The property stays where it is, but the legal ownership changes, and so may the mortgage.

1. Instruction. Everyone involved instructs us, and we explain who we act for.
2. ID checks. We check the identity of everyone who is joining, leaving or staying on the title.
3. Your lender’s consent. If there is a mortgage, the lender must agree to the change. It may need to assess anyone who is joining, or check that whoever is staying can afford the mortgage alone. If you are also changing lender, the new lender’s requirements apply as well.
4. The transfer deed. We prepare the transfer deed, the document that changes the ownership. Everyone named on it signs it in front of a suitable witness.
5. Stamp Duty, where it applies. Stamp Duty Land Tax may be payable in some cases, for example where the person joining takes on a share of the mortgage or pays money for their share. Whether it applies depends on the circumstances; GOV.UK explains how Stamp Duty applies to transfers of property, and we will tell you if a return is needed on your matter.
6. Completion. Once everything is signed and any money is in place, the transfer is completed.
7. Registration. We apply to HM Land Registry to record the new owners, and any new mortgage. HM Land Registry publishes its current processing times.

Why the person leaving may need independent advice

When someone is removed from the title, they give up their legal share of the home. Their interests may be different from those of the person staying, and we may not be able to advise both of them. For that reason, the person leaving may be asked to take advice from a separate solicitor before they sign. If the transfer is part of a separation, our family team can explain how it fits with any financial agreement.

What we need from you, and why

• Signed client care letters from everyone we act for. Our professional rules require us to give clear information about our terms and costs before we start work.
• Photo ID and proof of address for everyone involved. The Money Laundering Regulations 2017 require it, and it protects everyone from identity fraud.
• Your mortgage details. We need them to ask your lender for its consent.
• Proof of funds, if money is changing hands. The law requires us to check where it comes from.
• The signed transfer deed, witnessed correctly. A wrongly witnessed deed has to be signed again.

How long a transfer of equity usually takes

Often 4 to 8 weeks. The lender’s consent is usually the longest step, especially if the lender needs to assess someone’s finances.

Frequently asked questions