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  • FIRST POST
    • Neveronline79
    • By Neveronline79 10th Sep 17, 9:33 AM
    • 1Posts
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    Neveronline79
    Freehold service charge
    • #1
    • 10th Sep 17, 9:33 AM
    Freehold service charge 10th Sep 17 at 9:33 AM
    My partner and I have found our dream home (fairly new build at around 12 years old) and up until last week, everything had gone to plan with us expecting to exchange and complete within the next few weeks.

    Unfortunately, things have got complex. Our lender has pulled their mortgage offer on the freehold property as the property is subject to a rent charge and the title deeds state that if we defaulted a rent charge payment, the rent charge owner has a right of reentry (repossession). This understandably puts our lender's asset at risk.

    I can only imagine that the whole estate has the same clause in the deeds.

    Our options seem to be:
    -Pull out
    -Get another mortgage lender (we have begun a discussion with a mortgage broker)
    -Attempt to change the deeds with the vendors help

    The 3rd option doesn't really look viable given timescales, we don't want to pull out, and we have significant concerns regarding resale if we find another mortgage provider. Even if we obtain a mortgage, there's no reason to believe this wouldn't become a more prominent rule/issue with lenders in the future thereby making the property unmortgageable.

    Has anyone come across this before? How usual is this clause? Is there an element of insurance we can take from the fact the whole estate would have issues selling should this become a problem in the future?

    Absolutely any help or insight on this would be greatly appreciated as we seem to be stuck between a rock and a hard place on this one.
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