Right to buy remortgage - deed of postponement

thehonestone

I was wondering if someone was able to advise me as i am in a bit of a pickle.

I am in the process of transferring my mortgage from Abbey to HSBC. I bought my house a couple of years ago from Brent under the right to buy scheme. I have paid HSBC the booking fee, however now they tell me that they are unable to proceed due to the fact that Brent are not providing a deed of postponement (because of the discount). I have tried liaising with both HSBC and Brent both both say that they need to be first charge. Any ideas how i can resolve this as not only would i have lost 6 weeks but also £800!!!! I informed HSBC from the beginning that I purchased the house under the right to buy scheme.

silvercar

Are you asking for more money from the lender, or even to add any arrangement fees onto the mortgage? If so, that could be why brent are refusing. If the mortgage amount is not more than with Abbey, I don't see why Brent won't allow the straight swap. Abbey must be first charge at the moment, so I don't see why Brent can't allow HSBC to be first charge? Ask Brent again.

marvin

I don't understand why either, the law gives them (brent) only a right to partial return of discount and a right to be offered the house at market price if sold within 10 years. Get your solicitor to sort it.

Conrad

HSBC are not a lender I would turn to for RTB. RTB is fraught with many such difficulties, so I tend to stick to lenders that operate in the RTB arena.

HSBC should have advised you of this UP FRONT. Just typical that thier staff probably were not even aware of this obstacle. An experienced broker would have known this.

thehonestone

I am not looking to borrow and extra money nor am i adding any fees, all fees have been paid in cash already. All i want is a like for like remortgage but Brent's response is "The housing Act 1985 clearly states consent for postponement can only be given if the tenants are borrowing money for home improvements"....

Is that correct?

Might sound a bit silly, but where can i check whether Brent or Abbey are currently first charge?

My solicitor are not very proactive neither is brent or HSBC for that matter....to avoid paying months of SVR i am trying to sort this myself.

here_to_help

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silvercar

I am not looking to borrow and extra money nor am i adding any fees, all fees have been paid in cash already.

Brent are not wrong in saying that they can only consent to postponing the charge where you are borrowing further monies in respect of home improvements.

Cut through the red tape by borrowing an extra £100 for home improvements. That should tick the boxes.

thehonestone

The original purchase price was 250k. No further monies were borrowed at the time.

I am looking to borrow around 202k which is the redemption figure.

Is there anyway Brent or HSBC can budge to let this application complete???

silvercar

Abbey will be first charge, as all lenders require first charge on the property. Brent will have a second charge, which is why you need a deed of postponement. The minute that the Abbey mortgage is redeemed (with money from HSBC), Brent jump up to first place. The deed of postponement just means that Brent agree to fall back to second place, which allows the new lender to be the first charge.

Its Brent that need to budge and accept that they need to agree to a deed of postponement.

marvin

here_to_help wrote: »

Hi there.

I'm a lawyer in local authority myself.

How much was your original purchase price? Did you borrow any further monies at the time of purchasing under the RTB Scheme?

Brent are not wrong in saying that they can only consent to postponing the charge where you are borrowing further monies in respect of home improvements.

How much are you looking to borrow now and what is the redemption figure for your current mortgage?

If you don't want to disclose the info in public, you could message me privately?

Cheers.

This is all ver interesting stuff and something I did not know. I am remortgaging later this year so has helped me a bit.

here_to_help

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