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Is this legal?

joequigley
joequigley Posts: 2 Newbie
in Mortgages & endowments
This is a bit of a strange one that I've never heard of before and I wondered if it was legal?

My brother in law owns two flats - they're the upstairs and downstairs flat in a terraced property. It seems that he has one mortgage covering both flats.

Now he wants to sell one of the flats but the mortgage company is insisting that he gets the electrics checked by an independent electrical engineer.

I could understand this if he was buying the place, but he's only selling it.

Anyone heard of this before? Is it legal and why would the mortgage company demand it?

Comments

  • ACG
    ACG Posts: 24,896 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Sounds strange, are you sure you are getting the full and correct story?
    I can not iagine there is a law that states a lender can not ask for a electrical report so I very much doubt it is illegal.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    I suspect you are not getting the full story here.

    One mortgage lender but on how many titles?

    This could be the bigger issue and it may be cross wires (quite literally) as it could be the solicitors (on behalf of the new lender)

    There are so many variables though and doubt you will get any sort of definitive answer aside from people involved.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • sleepymans
    sleepymans Posts: 913 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Unlikely to be a law as such, however its likely the mortgage lender needs to be assured that the electricity supply to the flat that remains secured to the mortgage, has a separate, correctly wired and metered supply. Especially if the house had ever, as seems likely, been a single dwelling with a single supply/meter in the past.

    Not a biggie, surely?
    :A Goddess :A
  • dunstonh
    dunstonh Posts: 121,109 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It seems that he has one mortgage covering both flats.

    That could be part of the issue if he is now trying to do something in relation to one of them or sell them off individually. When the properties were split into flats and became two legal properties, did he tell his lender? or is that what he is doing now?

    Or it could be he is going for new borrowing and its only now the lender has found out what he has done and they want to make sure it has been done correctly.

    Could be multiple reasons but all of them would likely be legal as a lender can check major jobs have been done correctly on properties it has a charge on.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Did your brother split the property into flats himself?
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