Leasehold.. when did 70+ years left become a problem with getting mortgage?

pastmybest

As the title can anyone give me any idea at what point the length of lease left became a problem getting a mortgage? Was in in the past few months or has it been a problem for a lot longer.

nollag2006

Mortgage providers have long been reluctant to give mortgages on properties with short leases

pastmybest

nollag2006 wrote: »

Mortgage providers have long been reluctant to give mortgages on properties with short leases

So when I put my flat on the market the middle of last year with a 70 odd years lease do you reckon the agent should have suggested that I get it increased ASAP at that point?

Fire_Fox

Perhaps the agents thought you were clued up about your own property? There have been loads of threads on this board about issues that start cropping up at eighty years, I am surprised you haven't come across them. Did your solicitor not mention anything when you purchased, or have you been the leaseholder for ten years?

pastmybest

Fire_Fox wrote: »

Perhaps the agents thought you were clued up about your own property? There have been loads of threads on this board about issues that start cropping up at eighty years, I am surprised you haven't come across them. Did your solicitor not mention anything when you purchased, or have you been the leaseholder for ten years?

No solicitor didn't say anything when I bought .. well not that I recall and I have checked through the old paperwork and nothing in writing and it was nowhere near ten years ago.

However just after putting the flat on the market I sorted out a (different) solicitor and said to him to be ready should we sell quickly. He then pointed out the negative aspect of the short lease. So this made me start worrying.

I am feeling that my EA should of forewarned me right from the outset when instructing them to work for me. Instead I began to reliase, it would be a problem, after losing the first two buyers who each quoted the short lease as to why they pulled out.

Yes I have read all the lease posts especailly those from Richard Webster. I do feel very very miffed with my EA as I could of got the sale a lot earlier if I was forewarned. It is not a cost issue as I own a share of the freehold but one of missed opportunity.

Fire_Fox

IMO it is not the estate agent's job to babysit through the process, as an adult you should have appraised yourself of all the rights, responsibilities and implications of leasehold at the outset. However to get the best chance of securing a sale it might have been sensible if they had checked whether you were aware of the problem. I am rather confused that you have lost TWO buyers due to the short lease and have only now realised it is a problem?? I've checked your earlier threads and you are share of freehold so you just need to rush through a lease extension - everything should be explained on thsi site which I am sure you are familiar with by now.
http://www.lease-advice.org/publications/documents/

pastmybest

Fire_Fox wrote: »

IMO it is not the estate agent's job to babysit through the process, as an adult you should have appraised yourself of all the rights, responsibilities and implications of leasehold at the outset. However to get the best chance of securing a sale it might have been sensible if they had checked whether you were aware of the problem. I am rather confused that you have lost TWO buyers due to the short lease and have only now realised it is a problem?? I've checked your earlier threads and you are share of freehold so you just need to rush through a lease extension - everything should be explained on thsi site which I am sure you are familiar with by now.
http://www.lease-advice.org/publications/documents/

Oh really .... well I am sorry but I so don't agree with you as they are the experts. But possibly not in thiscase. They said they sold lost of flats like mine and should of known.

The first buyers bought within days of going on the market last year. Two weeks later I was told they couldn't raise the mortage. I found out a few months after, through a third party, it was because of the short lease. So back on the market with me not knowing the real reason they pulled out and my EA not finding out the real reason.

Next buyer within weeks and solicitors instructed and then after a short period pulled out for unknown reasons and I insisted my EA found out so we could learn from it. It was the short lease and so at which point I organsied the lease extension, with help from reading this forum, calling the leasehold advisory people and managed to get it done but it was around 7/8 weeks to get there.

Hopejack

My cousin bought a flat 10 years ago and was told by his lender that the lease would need to be extended by the vendor. Solicitor also recommended it. Vendor did extend in the end so that cousin could buy it. So it's definately not a recent thing.

Hope you get it sorted and it's not too expensive!

pastmybest

Hopejack wrote: »

My cousin bought a flat 10 years ago and was told by his lender that the lease would need to be extended by the vendor. Solicitor also recommended it. Vendor did extend in the end so that cousin could buy it. So it's definately not a recent thing.

Hope you get it sorted and it's not too expensive!

Beginning to think my solicitor I used when I bought wasn't on the ball as it was under 80 years at that point. I have no mortgage so he may of thought didn't matter. But it did when I come to sell. My extension costs, now 999 years, are around £600 so got away with it very cheaply compared to those who do not have a share of the freehold.

Running_Horse

Agree with Fire Fox. You're an adult. You could have phoned a few agents and asked their advice, or gone online. Maybe they could have said something; maybe you didn't raise it as an issue with them. Now you know what to do. Get on with it.

pastmybest

Running_Horse wrote: »

Agree with Fire Fox. You're an adult. You could have phoned a few agents and asked their advice, or gone online. Maybe they could have said something; maybe you didn't raise it as an issue with them. Now you know what to do. Get on with it.

Well tell me, when I put my flat on the market last year, how I would of known it was going to be a problem if I didn't know, at that point, it was going to be a problem. I am not a mind reader.

So how could I call different EAs to ask their advice as my view then was they are the experts not me and that is what I am paying them to do to advise me on the best way to market and discuss the negatives issues and if they could be overcome.

My lease was extended as my last post outlines.