Do mortgage offers have a time limit?

buzzyzoe

Hi all,

I'm buying a flat that needs a lease extension. The aim is for the seller to set the wheels in motion, and then for the extension to happen between exchange and completion, paid for by me.

I'm applying for a mortgage with Abbey through London and country, and am only at the initial application stage at the moment, but was wondering whether offers have a time limit? I'm thinking that if the lease extension drags on for months, could this lead to them withdrawing my mortgage offer?

Any help greatly appreciated as always!

Senior_Paper_Monitor

Abbey purchase offer last 6 months - they will also extension in appropriate circumstances although a fee (and updated docs / product change etc may be necessary)

buzzyzoe

Perfect, thanks.

If it takes anywhere near 6 months, I'd be looking for somewhere else anyway.

Senior_Paper_Monitor

On hindsight and just checking a case - the 6 months may be wrong (its a decent length - just checking)

Senior_Paper_Monitor

Glad I checked - it varies:

I have looked at half a dozen examples and the offers are valid for the remainder of the month in which they are issued plus a minimum of 4 months (I have found one example where it is 5 months).

They all end on the last day of a month whenever the offer is issued.

So you get a 'part month' + 4 months minimum (my previous comment about ability to extend applies).

Apologies for initial error

buzzyzoe

No worries, thanks for checking

That's still a pretty decent amount of time, I'd hope that should be more than enough!

GMS

How long is left on the lease now and how many years are you taking the mortgage over?

buzzyzoe

72 years at the moment, and a mortgage term of 25 years.

GMS

Fits criteria as it stands so no need to wait for lease extension prior to completion. This could be done at any time.

Obviously ensure you have any agreement to extend in writing prior to completion.

buzzyzoe

That makes sense, that would definitely make life easier.