Re-mortgaging is a term given to the process of switching onto a new mortgage deal, either with the same or a different lender, however leaseholders are not moving house and the new mortgage offer is still secured against the same property. Sometimes this is borrowing additional funds for such things as home improvements, debt consolidation, buying a car etc.
Letting us know
As the landlord we have to be informed of this process as we need to approve the new offer following our checks to ensure that leaseholders are not borrowing more than they initially bought their property (shares) for. Therefore we advise that leaseholders should always check that their new loan amount doesn’t exceed the amount that their property / current shares were sold for.
Although on 100% owned properties the landlord does not need to approve the new mortgage offer, we still need to be made aware of the process and served notices on completion as there may be a restriction on the title requiring our consent certificate.
The first step is for the leaseholders to approach a mortgage broker for advice. Their broker or solicitor should then write to us when their process commences so that we can respond with our requirements
Our requirements from a solicitor / broker will be:
- We need to see sight of their client/s mortgage offer for approval. This is applicable only to shared ownership properties and not outright owned properties.
- On a shared ownership property, we check that the new mortgage offer states that the Building Society is aware this is for shared ownership package with the correct amount of shares noted on the offer. If this is not stated or the shares are wrongly noted then we will decline the offer.
- We check that names match what is currently on our system, if not then we may decline the offer.
If the re-mortgage is being processed at the same time as a transfer of equity to add or remove a spouse, then please refer to the Transfer of Equity section for more information
If the leaseholder has recently changed names because of marriage or divorce then they should contact their Home Ownership Officer with relevant paperwork so that names can be changed on the system.
- The term of lease should be correctly stated on the mortgage or we will decline the offer.
- If all checks are satisfied then we confirm our approval in writing to the solicitor and request Notices of Mortgage together with relevant fees which confirms completion of the process
On completion we should receive Notices of Mortgage and relevant fees from solicitor and that will enable us to provide a certificate of compliance required for Land Registry.