Mortgage with additional borrowing to extend lease

Joe09876

Hi

Just after some help and wondering if anyone has encountered this before?

Myself and my partner have found a property we really like. It is a leasehold flat with 75 years remaining on the lease.

The owner has accepted an offer for 138k and agreed to put an application in to extend the lease before he sells so we can continue the application without having to wait for 2 years.

The issue is we would need to borrow an extra 8-10000 on top of the mortgage to pay for the costs of extending the lease but cannot seem to find a mortgage provider who would do this.

Obviously it would add more than this amount onto the value of the property however the providers we have spoken to will only lend the purchase amount.

I was wondering if anymore has had any experience with this or has an idea about a way in which I could go about it?

I have only really spoken to basic advisors on the phone so don't know if it is worth getting a proper meeting arranged in a branch where I could explain in more detail however anyone I have spoken to seems pretty adamant that it is set in stone that they cannot provide further borrowing.

Any replies would be much appreciated!!

Joe09876

Anyone know if this is possible? A couple of days later I'm none the wiser!! ��

ExpertAdvice

Hi,

No lender would offer anything on top of the property price.

How much are you borrowing on a property of £138K?

How much is your annual income?

Are you borrowing the maximum amount available to you?

Joe09876

We will be borrowing 115-117 of the 138k. Annual income between the 2 of us is 55k.

We applied with Halifax and on their mortgage promise they said we could borrow up to 250k but we don't want to really go past 160.

Having looked into it I don't think it's going to be possible. I was just hopeful as the lease extension would make the property worth as much as the mortgage but doesn't look possible

kingstreet

Buy it now and have the lease increased in a couple of years when you've built up a bit more equity. No lender is going to lend based on what it will be worth after it's been extended until after it's been extended.