Definition of 'ex Local Authority'?

AdKM

Hi all,

I bought a one bed flat with my girlfriend 14 months ago from a Housing Association. Sadly we have split up and I am now in the process of trying to buy her out.
The flat (in SE London) has almost doubled in value since we bought it for £149k. The current average figure of estate agent valuations is £285k. Whilst on paper this sounds great it has created great difficulties of its own. Our current mortgage provider is happy for me to take on the existing mortgage of £118k and will actually lend up to £140k. But this is nowhere near enough in terms of reaching the equity I need to release to buy out my partner (we have agreed on a figure of £75k).
My broker sourced a 2nd charge loan from Shawbrook bank as a solution. All seemed to go well with the application but at the end Shawbrook's solicitor recommended to them that they should not lend due to a technicality on the lease (in the event the flat is totally destroyed they are worried about their exposure due something to do with a 'frustration' as a legal term - sounds crazy to me that they aren't happy to lend if the first lender (Halifax) was).
Anyhow the Master broker my broker is speaking to says options are very limited as far as their panel of lenders goes as my flat is 'ex local authority'. In my eyes it isn't. It is ex Housing Association. To me there is a clear difference. Is it indeed the case in legalise?
It now seems my only option left will be an offer from Blemain. I'm currently waiting to see what the interest and APR offer will be in terms of detail. Shawbrooks offer before it fell through was 5.9% above Bank of Scotland rate.
The Housing Association (now acting as freeholder) to their credit are willing to look at amending the lease if I can't find a 2nd charge lender willing to lend.

DomRavioli

What most call ex local authority is actually ex social housing. Most props used to belong to local authorities, hence where the term was coined.

Unfortunately still the same thing; and if people won't lend to you, then you're stuck.