Factor Fees/Service Charge on Mortgage Application.

Bamber19

Hi all

I've recently had an offer accepted on a property. Having spoken with the mortgage adviser they were looking for the finer details and asked if there is any ground rent & service charge. I advised no ground rent but was unsure of service charge. I advised there is a factor fee which includes the building insurance and the adviser told me they were not interested in the building insurance but it wasn't clear if the remaining portion of the factor fee (whatever that may be as it is provided as one whole figure) is a service charge. The adviser didn't have any greater knowledge on this either to be honest, any ideas if this comes under a service charge?

Thanks

kingstreet

Ground rent and service charges on leasehold property in England are included in affordability calculations, so your fees should also be included IMHO.

I'd also include the element for buildings insurance.

If the mortgage is affordable, it has done no harm. If it isn't I'd then check with lender to get their view before proceeding.

Bamber19

kingstreet wrote: »

Ground rent and service charges on leasehold property in England are included in affordability calculations, so your fees should also be included IMHO.

I'd also include the element for buildings insurance.

If the mortgage is affordable, it has done no harm. If it isn't I'd then check with lender to get their view before proceeding.

Ok thanks, I was trying to find out exactly what service charges were to see if they were analogous to factor fees but it wasn't clear. The provider said they specifically won't include the insurance element, I'm not sure if this is because they already factor in an average there or something like that though. Thanks