Secretary of State - Second Charge

e_flynn1

Can anyone help!!! My partner is in the forces and is taking advantage of a benefit they offer known as LSAP where they basically advance pay to help fund a house deposit and legal fees, in doing so they take a second legal charge over the property being purchased.

We have signed all the legal charge docs for the second charge and MOD confirmed we were eligible for the advance, only thing outstanding for them to send the funds is a letter from our mortgage provider comfirming, in the secretary of states set wording, that they will not consider any further lending which would jeopardise their second charge, we have found out this morning from our sol that the building society has refused to provide this as they have an obligation to customers to consider any further advances applied for!!

Basically after all my warbling i am just wondering if anyone has ever had experience of this before?? and also if anyone has any desperately needed advice!!!

Thank you

homer_j_3

I have never seen this in the exact same scenario you are describing but have seen it generally where 2nd chargees want this commitment from 1st chargees and vice versa.

It becomes very messy and did always end up with the whole thing falling apart because 1st chargee has the power at the end of the day and it is them that decides whether a charge can be placed behind it.

A few people tried taking the refusal of this down the FSA route but often with the same response " The FSA cannot get involved with commercial decisions and they (the lender) are quite well within their rights to take a commercial desicion on whether to agree or disagree with your request" so there was never any luck with taking this route either.

With your scenario it may well be different (and hope it is) and will follow this thread with great interest.

Good luck!!!

Andy_L

The army rumour service finance forum is probably your best bet for advice

http://www.arrse.co.uk/cpgn2/Forums.html

e_flynn1

Thank you both for you replys, Andy L never knew that website existed, will come in handy for many things I think.

Well after numerous phone calls today it turns out the MOD just want confirmation from the building society that if we approach them for a further advance they will send a deed of postponement to the MOD - is this standard practice with second charges??

herbiesjp

Yep - all standard stuff