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  • FIRST POST
    • lcc86
    • By lcc86 21st Sep 16, 6:24 PM
    • 653Posts
    • 995Thanks
    lcc86
    Lease extension issue?
    • #1
    • 21st Sep 16, 6:24 PM
    Lease extension issue? 21st Sep 16 at 6:24 PM
    Hi all,

    I'm buying a flat with share of freehold. The lease was under 70 years so when I made the offer, I said that the offer also includes a lease extension. Vendor was fine, he sorted it his end, but was advised not to register it with land registry until completion. I made my solicitor and mortgage provider aware of this, proof was seen, all was fine.

    Suddenly the mortgage provider has now said the lease extension MUST be registered before they will lend due to a change in policy. I can't get my head round it, my mortgage adviser can't, my solicitor can't either. My solicitor has written to my bank explaining this will delay the sale by months and potentially mean the vendor pulls out. Our argument is that is in some ways no different to buying a new build flat I.e. There's no lease until you complete, so why should a lease extension be any different, particularly when we added a condition that it was to be registered on completion which they were initially happy with.

    Anyone had any experience of this or any advice of what to do in this situation (other than kick up an almighty fuss, which I'm already doing)?
    Last edited by lcc86; 21-09-2016 at 6:28 PM.
    1/12/14 total £9,140 Today £5,238 42.6% paid

    £1127 saved towards 'The Move' as of September 2016 £80 saved towards citizenship £100 saved towards Xmas 2016
Page 1
  • Land Registry representative
    • #2
    • 22nd Sep 16, 10:21 AM
    • #2
    • 22nd Sep 16, 10:21 AM
    I can't really help with the lender's reasoning other than confirm that this can be their approach as often their decisions are based on a strict policy which they have set themselves to follow.

    They may not be willing to bend so the only option is for the Vendor to register the deed of variation asap. As the sale is confirmed the solicitor should also submit those details and ask us to expedite the registration.

    Whilst it won't be an immediate fix the timescale should be reduced significantly (weeks not months) and could hopefully keep the sale/purchase alive
    ďOfficial Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • lcc86
    • By lcc86 22nd Sep 16, 10:47 AM
    • 653 Posts
    • 995 Thanks
    lcc86
    • #3
    • 22nd Sep 16, 10:47 AM
    • #3
    • 22nd Sep 16, 10:47 AM
    Many thanks. It just seems a bizarre thing for a lender to do I.e. It wasn't an issue then all of a sudden it is? I can understand if they change their policy, these things happen, but I feel that they shouldn't be able to do so retrospectively and affect people with sales already going through.
    1/12/14 total £9,140 Today £5,238 42.6% paid

    £1127 saved towards 'The Move' as of September 2016 £80 saved towards citizenship £100 saved towards Xmas 2016
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