Was i mis sold my mortgage?

andyman3377

Hi, i bought my flat in 2006 and have recently decided to sell. When advertising the property i looked for the details of the remaining lease and found my initial mortgage valuation report.

This stated that the lease had 85 years remaining when i bought the property.

I therefore advertised the flat with 76yrs remaining on the lease and found a buyer quickly.

A few weeks later i recieved a letter from my buyers solicitors stating that there was only 56yrs left on the lease, i checked the land registry myself and found this to be the case. The result of this was my buyer pulling out as they could not get a mortgage.

That would mean when i purchased the property the lease had 65yrs remaining which i think would have been too short for the 30 year mortgage i took out.

So my thoughts were that they added an additional 20yrs so they could sell me the mortgage, would this class as a mis sold mortgage and would i have any comeback?

Thanks,
Andy

HappyMJ

No not mis-sold but your solicitor or conveyancer may have made a mistake and if they did they you might have a case against their insurer.

In it's current state it's unmortageable and therefore unable to be sold to anyone requiring a mortgage so how much to extend the lease? How much to extend the lease had there been 76 years left? That's the amount you'll be looking to reclaim in a case against whoever made the mistake.

andyman3377

Looking at the online calculators it would be around 17k to extend the lease currently.

If it had 76yrs remaining then it would be more like 5k, so it's a fair amount of difference.

HappyMJ

andyman3377 wrote: »

Looking at the online calculators it would be around 17k to extend the lease currently.

If it had 76yrs remaining then it would be more like 5k, so it's a fair amount of difference.

That is and you better get it done now or you'l never sell. You can attempt to reclaim the costs later. You could ask the buyer for an extra £5k on the asking price for extending the lease for them and if they refuse just find another buyer.

betmunch

Theres no mis-sold mortgage here at all.


You may have something to complain about to your solicitors for not pointing the short lease to you.


The lender may have a claim against the surveyor should they repossess and fail to get their money back.


But from what you have posted the mortgage isn't doing anything it shouldn't so no mis-sale.


Also, based on the limited info in the OP theres no reason to state the property is unmortgageable

dunstonh

No mis-sale here. Your mortgage adviser/broker has no responsibility for the legal side of things. This is not a mortgage issue.

However, the solicitor may have a case to answer as they are the ones that handle the legals.

Goldiegirl

I agree, if there is fault to be found it is with the solicitor who acted for you and the lender when you bought the flat.

The lender relies on the solicitor to advise them of the correct term of the lease.

The mortgage offer is issued on the basis of the information provided by you and/or the person who submitted the application on your behalf.

The solicitor gets a copy of the mortgage offer, and it is then that he gets the chance to inform the lender of any discrepancies, such as the term of the lease.