Remortgage to purchase freehold, LTV question

JustTakeAllMyMoney

Hi,

A relative of mine part owns a lease hold flat she owns 70% of it and pays rent on the other 30% to the council, the flat is now on a short lease 65 years, and the council have offered to the chance to buy out the freehold, the figure they have come back with would mean my relative need a £145k mortgage on the council valuation of the property being £150k, this valuation is there current valuation with the short lease in place. Borrowing £145k on the council valuations with the lease as is would mean a 95% mortgage but we know the property with freehold in place would be worth around £170k according to the neighbours with the same property recent valuation from a mortgage company.

Do you think it would be possible to get a mortgage lender to do the valuation on the property based on what it would be worth with the freehold in place as that's what the remortgage and increased lending is for, the deeds after the remortgage would show it now has the freehold ? Doing it this way based on the value with the freehold means the LTV would be around 80% and the mortgage deals are a lot better for that, if not I think the only solution would be to take the 95% mortgage then remortgage again in a few months time with the freehold in place but she would like to avoid that route if possible.


Thanks