freehold purchase has restrictions making house unsaleable

Lotteflobble

My husband owns a leasehold house and is attempting to buy the freehold and sell the house at the same time. There are currently 30 years remaining on the lease. However restrictions have been placed on the purchase of the freehold regarding mining rights and only using as a residential property. The buyer's mortgage offer has been withdrawn as the buyer's mortgage lenders will not lend with these restrictions in place and the Trust that own the freehold refuse to remove them. They refuse to negotiate any further and are now saying they will withdraw their current offer to sell the freehold which they are within their rights to do as the original cut off date to finalise the purchase of the freehold has passed. Does anyone have any experience of this situation? Is there likely to be any mortgage lender that would be prepared to lend money in these circumstances, or will it only be suitable for a cash buyer? Any help would be appreciated

jayII

What sort of mining rights? Are they reserving the right to mine there, or saying mining will not be allowed. I'm not an expert but if it's the latter, it seems odd that the mortgage company have concerns about it.

My house has a 'residential only' (plus other things) restriction on it, but I had no problem getting a mortgage.

I'd suggest your friend talks to a decent mortgage broker.

comeandgo

is it not the length of the leasehold that means no mortgage, I believe mortgage companies prefer a lot longer, nearer 100 years. My house has both mining rights and residential use only restrictions and not a problem for mortgage companies.

AnotherJoe

I also think it's the length of the lease. Many houses have residential only restrictions, and surely mining rights isn't going to be an issue?

A bit hindsight, so perhaps only of use to someone else in similar position but better to buy the freehold first rather than at the same time as trying to sell ?

lincroft1710

Many houses have a clause in the freehold that the mineral rights remain with the original land owner. Use only as a residential property is the norm with the vast majority of freehold (and leasehold) houses.

Lotteflobble

The Trust are reserving the rights to mine there. Halifax find this unacceptable. Can I ask who your mortgage provider is?

robatwork

You've only got 30 years to find out what those mining rights are worth, so I'd start digging.

AdrianC

There's a very simple solution.

Buy the freehold.
Either renew the lease THEN sell the house as new-lease-with-freehold, or merge the two and sell the house as freehold.

As it is, you're trying to sell a house with an unmortgageably short lease on the promise that "Well, it will have the freehold with it, honest."... Would YOU buy on that basis?

davidmcn

Lotteflobble wrote: »

The Trust are reserving the rights to mine there.

What exactly are the rights they're wanting? Merely retaining the right to extract the minerals (without having the right to break the surface, and on paying compensation for any damage caused) is normal enough (in Scotland at least) and shouldn't trouble the Halifax.

Lotteflobble

Sorry if I'm not making a great deal of sense, I am new to all this. The purchase of the freehold and the sale of the house were supposed to happen on the same day so part of the sale proceeds could be used to pay for the freehold purchase.
Would be very grateful if someone could point me in the direction of mortgage providers who they know have lent money in these circumstances as the Halifax have definitely said no. The house is in Wales by the way, just in case that is relevant.

AnnieO1234

Same restrictions here, Halifax mortgage changed to HSBC a few months ago without issues.

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