should we still buy the house?

cathie_3

Hello

Hope you can help me clear my thoughts.

We are in the process of buying a new house (1970's semi, within an estate). There is a covenant in the title dees which say we may need to pay some money to the church if they need a new chancel. We have put an indemnity in place up to the value of the house, however the mortgage company have said they will not lend on it because they belive the limit of the indemnity would not cover the cost involved.

There are a few issues; whether we will be able to get a mortgage for this property at all, because one company has refused to lend?

Also if we do get a mortgage and move in to the property will we experience the same problems trying to sell, and be in a property that lenders will not lend on, consequently a virtually unsaleable house?

My own thoughts are that as the house is within an estate which was all built at the same time, the majority of the houses will have the same covenant within their title deeds. However without going through them all we will never know if that is true or not. Also if this is the way the mortgage companies are going there is and estate full of houses which it will be difficult to borrow on.

If you have any similar experiences or advice I would be gratefull
Thanks

payless

which lender does not like the indemnity policy.... could it be increased ?

cathie_3

The Abbey don't like the policy, our solicitor thinks that the indeminity cover is a reasonable amount.

payless

IF at latter stages / happy with Abbey product, I would think f the costs of a new application would b much higher than those of getting a policy that the Abbey are happy with
( although surprised they aren't accepting Solicitors view)

Its my understanding ( don't hold me to it) that the highest claim against an individual has been less than £100K

also believe the churches only have until about 2013 to register these potential claims on the land regsitry ... or they get wiped off