Whether you’re looking to remortgage, explore equity release options or lifetime ISAs, our Residential Property team will guide you every step of the way.
Explore the sections below to learn more about how we can assist you with your property needs.
We are always happy to discuss conveyancing work at an initial meeting at no cost or obligation and a conveyancing quote setting out all of the fees and disbursements for you to consider.
You can get started today by obtaining a free, no obligation quote from Sydney Mitchell by clicking the link here.
Remortgage
A remortgage occurs when an existing mortgage, secured against a property you already own, is replaced with a new one, whether this is with the same lender or a new one. A remortgage may be required for a variety of reasons, such as to borrow more money, secure a better mortgage deal or to get secure interest rates.
What is involved in a remortgage?
The standard steps in a remortgage transaction are:
- Obtaining a mortgage settlement figure, known as a redemption statement, from the existing mortgage lender.
- Reviewing the mortgage offer and reporting on its contents, both to the client and lender, as appropriate.
- Arranging repayment of the existing mortgage on completion.
- Submitting the application for registration to the Land Registry, to register the new mortgage.
Sydney Mitchell can also assist with the legal process and registration of new mortgages secured against residential properties.
Equity release
These schemes are often used to allow you to release equity in your property.
There are two main types of equity release schemes in which equity can be release from your home often known as a a home reversion and a lifetime mortgage.
Home Reversion
In its basic form, all or part of your home is sold to a private company known as a ‘reversion company’ at a discount and in return you will receive a cash lump sum, an income or both. You can remain in the property rent –free or for a nominal monthly rent, for the rest of your life. When the property is sold, usually after your death or when you move to alternative accommodation, the reversion company receives, the proceeds of sale, depending on what share of the property you have sold. In some cases you are granted a lease of your property or the ownership is split
Lifetime Mortgage
With a lifetime mortgage you borrow against the value of your home releasing a loan, which can be used to provide an income, a lump sum, or both. The loan does not have to be repaid until the happening of certain events, these include a sale of the property you passing away, or when you move to alternative accommodation including residential and nursing homes. Interest, usually at a fixed rate, is compounded monthly and ‘rolled-up’ and added to the outstanding loan.
At Sydney Mitchell we have the experience to assist you in what is a complex area of property finance to ensure that you are fully aware of the financial implications and commitments you are making when entering into one of these schemes.
Lifetime ISAs
A lifetime ISA is a savings scheme set up by the government for 18-39 year olds, which can be used by account holders towards the purchase of their first home up to £450,000, or for retirement.
Account holders are able to save up to £4,000 annually and will receive a 25% bonus from the government.
Withdrawing a lifetime ISA for the purpose of purchasing your first home, or to use towards retirement, will not incur any charges, but should you wish to withdraw your lifetime ISA for any other purpose, a 25% government charge will be incurred.
What is the process of drawing down a lifetime ISA?
To utilise your lifetime ISA savings towards the purchase of your first home, the following steps must be followed:
- Inform your conveyancer of your ISA account details.
- Your conveyancer will arrange for you to complete a lifetime ISA investor declaration form. Once this has been completed, it must be provided to your conveyancer.
- Your conveyancer will complete a lifetime ISA conveyancer declaration.
- Your conveyancer will forward the lifetime ISA investor declaration and lifetime ISA conveyancer declaration to the ISA provider, to request the savings and government bonus be paid to them in readiness for completion of your purchase.
- The funds will be released to your conveyancer.
It is important that you advise your conveyancer of the existence of your lifetime ISA at the earliest opportunity, to avoid delays in exchanging contracts or completing your purchase.
We answer some frequently asked questions on lifetime ISAs below.
Other mortgage types
Buy-to-let mortgage
If you are contemplating buying a property for the purpose of renting it out then you are looking at becoming a landlord of a ‘buy to let’ property.
Investing in Property has become very popular in recent years. Sydney Mitchell LLP can assist you in navigating the legal complexities in purchasing a property as a buy to let investor either in your individual name or in the name of a company.
Commercial re-mortgage
It is possible for owners of commercial premises to re-mortgage those premises and utilise the capital raised towards the purchase of a residential property.
In these circumstances, Sydney Mitchell’s Residential Conveyancing team can deal with the purchase of the residential property, whereas our Commercial Conveyancing team can deal with the re-mortgage of the commercial property.
Find out more about the team
