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Rent charge with possession
Whirlee
Posts: 113 Forumite
Dear All,
I'm a FTB and was on this site back when I was trying to get an offer accepted. It was finally accepted and the paperwork has all been going on for weeks and weeks. A lot of this time was because there is a management company that maintains the grassy verges, shrubs etc. and my solicitor wanted to see the last few years of accounts, the transfer that gave them their rentcharge that sort of thing.
Well everything has come through now, but my solicitor is a bit concerned about the way the management company's power to take possession is worded. It says that if I fail to pay the rentcharge they can take possession of the property. This is quite normal, but it is usually followed by a proviso that if there is a mortgage company they will be informed first. This is missing. Apparently if there is a clause for possession AT ALL then HSBC will refuse to provide a mortgage. My mortgage is with NatWest and she is now asking them if they are content with the rentcharge. She thinks it is probably implied that they would inform the mortgage company, since they require notification of the mortgage, but its not a certainty.
Has anyone else experienced this? I'm so close to exchanging but this issue seems potentially quite bad. Feeling a bit worried.
I'm a FTB and was on this site back when I was trying to get an offer accepted. It was finally accepted and the paperwork has all been going on for weeks and weeks. A lot of this time was because there is a management company that maintains the grassy verges, shrubs etc. and my solicitor wanted to see the last few years of accounts, the transfer that gave them their rentcharge that sort of thing.
Well everything has come through now, but my solicitor is a bit concerned about the way the management company's power to take possession is worded. It says that if I fail to pay the rentcharge they can take possession of the property. This is quite normal, but it is usually followed by a proviso that if there is a mortgage company they will be informed first. This is missing. Apparently if there is a clause for possession AT ALL then HSBC will refuse to provide a mortgage. My mortgage is with NatWest and she is now asking them if they are content with the rentcharge. She thinks it is probably implied that they would inform the mortgage company, since they require notification of the mortgage, but its not a certainty.
Has anyone else experienced this? I'm so close to exchanging but this issue seems potentially quite bad. Feeling a bit worried.
0
Comments
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Are you aware that if the property with the rentcharge is freehold then you can redeemed it. This can be done via the rentowner or by applying to ourselves under the Rentcharges Act 1977. We are part of the Department for Communities and Local Government. Our email address is [EMAIL="rentcharges@communities.gsi.gov.uk"]rentcharges@communities.gsi.gov.uk[/EMAIL]“Official Company Representative
I'm the official National Rentcharges Unit representative. MSE's verified me to reply to queries, sot I can help solve issues. You can see my name on the verified companies & organisations list. I'm not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"0 -
Has anyone else experienced this? I'm so close to exchanging but this issue seems potentially quite bad. Feeling a bit worried.
Isn't the simplest answer
"Always pay the rent charge"?
Just make sure to set a reminder of when it is due and chase if a bill does not arrive: something you should do for all bills to avoid sneaky extra charges....
If you do not pay it the beneficiary almost always threatens the mortgagee first as they will pay up, and recharge you.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0
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