Definition of "Ex-Local Authority"

jammur27 · 31 October 2008 at 11:32PM

Hi

I've been trying to sort out my remortgage with the HSBC, and have hit a snag...

The valuation report of my flat states that my flat is ex-local authority, so the HSBC is only prepared to lend 80% LTV. However, I do not agree. It is on the first floor of a 3-storey terraced block. It is brick-built, with a pitched slate roof. The property was built in 1986 by Leeds City Council, but was sold to a private individual in the first instance. It has never been rented out by the council, but I still pay my maintenance charges to Leeds CC.

I was under the impression, that "ex-local authority" referred to properties that were bought under the Right to Buy scheme under Thatcher?

Hope my ramblings make sense, and that someone can clarify?

Thanking you in advance,
James

before_hollywood · 31 October 2008 at 11:37PM

would have been built by leeds city council and building still owned by them, so therefore its still classed as ex-la, even though there are right to buy houses etc that have been privately owned for best part of 20 years

opinions4u · 1 November 2008 at 7:50AM

I would have backed your definition and instinct says "find another lender".

Were any others in the block rented out though? Are any still rented out? Is much of the surrounding area LA housing and flats? If so, then I can understand a lender being cautious.

Conrad · 1 November 2008 at 1:01PM

The 'flavour' of the estate / block will influence valuers classifications. If it has a council feel they will tend to class it as ex LA, even if the first owner was private.