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Lease extension issue?
lcc86
Posts: 2,453 Forumite
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)?
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)?
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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“Official Company Representative
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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.Save £2,400 tuition fees - £2,321.04 as of 08/24
Pay off credit card by December 2024 - £1,450/£2,0000
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