Pre-emption agreement stopped remortgage!

Senior_Paper_Monitor

Incidentally Barclays (Woolwich) won't touch pre-emption on either remortgage or purchase.

It was a case with them that collapsed very late in the deal when the Council (the left wing loonies of Hackney) refused to amend (waive) pre-emption rights for a purchase (our client - a portfolio buy to let owner) of a previous right to buy property in the 5-10 year period, that drew my attention to the issue and the potential future danger for our right to buy clients.

Hodgeland

Hi

Thank you for the information and advice, out of interest, from your experience, which mortgage lenders shall I approach regarding our remortgage that will accept the pre-emption agreement?

Senior_Paper_Monitor

I am happy to give general information and guidelines but not to give specific advice as in recommending a lender, for three reasons:
1) I have insufficient information about your total circumstances to do so
2) It is against the forum policy to do so
3) We make a living from giving advice, having invested (in this case a good chunk of last month) heavily in developing our knowledge

Hodgeland

OK thanks,

Can anyone else help? I would like to know which mortgage lenders I am better off trying?

Cheers

holly_hobby

Give Halifax a call ..... they are usually a pretty good yardstick for how placeable your case may be

But do consider what your current lender may offer you with regards to existing borrower products ..... as you may be causing yourself unnecessary headaches if their products (once you take into account any exit, remortgage and admin costs), are akin to whats on offer elsewhere ....

Hope this helps

Holly x

Hodgeland

Thanks Holly

We are currently with Birmingham Midshires but I can't see their rates online (you have to go through a broker) but will defo check them out before I try some other lenders.

Thanks again x

holly_hobby

BM are part of the old HBOS (now Lloyds) Banking Group.

Here are their current existing borrower products ...

http://www.bmsolutions.co.uk/retention/mainstream/

As an existing borrower, I would give them a call first to see if you can apply direct for a simple product tsf.

An existing borrower product transfer is neither classed as a new business application nor requires further underwriting (as long as you are not applying for a further advance/or trying to obtain a product on a lower ltv).

Hope this helps ...

Wish you well

Holly x

Mokka

Senior_Paper_Monitor wrote: »

Incidentally Barclays (Woolwich) won't touch pre-emption on either remortgage or purchase.

It was a case with them that collapsed very late in the deal when the Council (the left wing loonies of Hackney) refused to amend (waive) pre-emption rights for a purchase (our client - a portfolio right to buy owner) of a previous right to buy property in the 5-10 year period, that drew my attention to the issue and the potential future danger for our right to buy clients.

The pre-emption rights for councils for the right-to-buy properties are in the Housing Act 1985, so it is the right-wing Tory loonies who you have to blame for the situation- they are not specific to a particular council.
As the governments seems to keep fiddling with the various clauses of the RTB law, so it might be worth lobbying your MP to shorten the buy-back period.

Senior_Paper_Monitor

While I was referring jovially to the rather extreme politics and general reputation of Hackney Council in my explanation rather than blaming any political party in particular for the legislation, I will chose to trump your card with ....

Section 156A of the Act, which deals with the '10 year pre-emption' was "inserted (18.1.2005) by Housing Act 2004 (c.34)" when I believe one Tony Bliar was King of the UK.

While I have, despite processing dozens of the purchases, some moral doubts about the structure of right to buy (and certainly its potential abuse) and the logic of certain items within the legislation (like the almost never applied pre-emption right) there can be no doubt that the Conservative government has always ramped up the availability while Labour has continuously closed down the opportunity.

Mokka

I guess this makes sense- Labour wanted to make right to buy unattractive, though they didn't dare to revoke it.

But as there are rumblings about 'simplifying' the RTB process (whatever that means) somebody should look again at the pre-emption rule as it does not seem to offer any discernible benefit to anyone.