Lied to about lease length- panic

heytink

First time buyers could really use some help please.

Offer accepted on a flat, were told numerous times by the EA that the lease was in excess of 100 years, we have just had our mortgage offer in writing through the post which states the lease as 85 years.

How do we proceed? I cannot fathom why the seller would lie about the lease, surely it would always have been found out!?

My question is: if lenders dont know the value of the lease, do they go with the minimum they would lend on when doing the survey/issuing offer? (clutching at straws I know, just wanted to rule it out)

How do lenders find out lease information? If they have stated this length on our offer, is it likely to be correct

thanks

theartfullodger

Land registry will tell you online for £3 - why didn't you look?

heytink

First time buyer, as stated. Sorry I don't magically know all the avenues to check seeing as I have never done this before.

alchemist.1

heytink wrote: »

First time buyer, as stated. Sorry I don't magically know all the avenues to check seeing as I have never done this before.

Someone is trying to help you. No need for the attitude.

csgohan4

Do you mean the EA lied or rather didn't have the information to hand? Where did the EA have the information from?


Seller told you direct?


That's why you employed a solicitor with the lender acting with due diligence to ensure things are not missed

kinger101

The EA may have breached consumer protection regulations.

Your options are;

(a) tell the vendor that you will proceed with the purchase (at the same price) of the condition they extend the lease. If the valuation at 85 years matches your offer, this reduces your bargaining position somewhat. In which case, I wouldn't disclose the valuation to the vendor/EA.

(b) withdraw from the sale then ask the agent to compensate you all your abortive purchase costs thus far. You'll have a stronger case if you have something in writing from the agent. If they refuse, you can refer it to the ombudsman scheme of which they are a member.

Whether (b) will be successful will also depend on whether the EA was misled by the vendor (in which case they're not at fault, unless they had reason to suspect the lease may have in fact been shorter, e.g. they marketed the property before).

Have much have you incurred in fees etc so far?

skintpaul

Would report EA, too- surely they have a duty not to mis represent a property?

Pixie5740

I'm assuming your solicitor is on your lender's panel of solicitors meaning they are representing both you and your lender.

What do you want to do? Walk away from this property? Negotiate a lower price? Ask the vendor to extend the lease before you continue? If you go ahead and buy it with an 85 year lease then you have about 5 years to extend the lease before the cost of extending the lease starts to become significantly more expensive.

Marktheshark

If it can not be extended its is a financial time bomb.
With a lease you own a contract that lets you live in someone else's house.

Leaseholds are the next endowments, often valued pound for pound with ownership.
At some point as the clock ticks down this lease contract is not going to be worth anywhere near the investment value.

What would someone pay for a lease that runs out before they die and could leave them penniless and homeless.
That is what you will be investing in.
Bricks and mortar and leave the short leases to those who do not understand the financial loss they are about to wake up to.

SmlSave

Although I personally think that estate agents are mostly lying so n so's ..


Could it not be that the lease is for 999 years and there is only 85 years left, hence the confusion?

Ulfar

You either need to get the vendor to extend the lease or start the process on the understanding you are going to complete and pay for it.

Once you buy you usually cannot start the process for 2 years. As the length of lease shortens the price to extend will increase, this is especially true once you get below 80 years.

I would suggest this is why the vendor either lied to you or the estate agent. I would want to know what the freeholder wants to charge for the lease extension before completing. I would also want details of any service charge/ground rent in writing.

These are all things you employ your solicitor to look into.