Lloyds bank changing their mind close to completion?

lcc86

I'm buying a leasehold flat with 65 years on the lease. The buyer has completed the lease extension paperwork as I made this a condition of my offer. The bank said it would be fine as long as they were given proof from my solicitor that the extension was being processed, and as long as the registering of the lease extension was made a condition of my purchase. This was all over the last few months and we're now close to exchanging contracts.

Had a phone call a few days ago from the bank, turns out they've changed their policy and want the lease extension registered BEFORE we complete. This is despite them previously confirming to my mortgage advisor that they would accept the lease being extended on completion. They have sat on this info for a month or so before telling me so I haven't been able to act and have been proceeding as normal.

Registering the lease extension before the sale could take 4 months or more. My advisor is arguing my case and has a letter from my solicitor explaining that this will delay or even ruin the sale of my house and purchase of my new place.

My question is, can a bank just change their policy like this and apply it retrospectively? I have nothing in writing about this change in policy, only my mortgage advisor has it in his emails. I also decided to call the bank and ask a general query about buying property which needs a lease extension, and they said there was nothing in their terms which said we couldn't do it. I made a note of the date and time of the call just in case.

I feel the bank should honour their original process and allow us to complete and register the lease extension on completion as originally agreed. But I don't know if I have a leg to stand on or if the bank hold all the cards here. I have an email from my mortgage advisor saying the underwriters are happy to accept the lease extension on completion back in August, should I just try to use this in my favour?

lcc86

Can anyone help?

jackomdj

Until completion date the bank can change their mind for any reason they want.

csgohan4

lenders money, their rules and they can change them

lcc86

Surely if that's the case then there's no accountability? If they've told me in writing it's okay how can they change their policy? It's immoral if nothing else, although I know banks and morals don't really go together....

shortcrust

lcc86 wrote: »

Surely if that's the case then there's no accountability? If they've told me in writing it's okay how can they change their policy? It's immoral if nothing else, although I know banks and morals don't really go together....

Because they'll have also told you in writing that they can change their mind at any time. Accountability doesn't come into it. From a contractural perspective they haven't done anything wrong.

I really do sympathise and it does sound incredibly unfair.:(

lcc86

Yeah I just wish they'd refused from the outset then at least I would've known where I stood and I would've gone elsewhere. Even their own mortgage advisor doesn't understand what they're doing as lease extensions aren't uncommon. I just hope they reconsider.

shortcrust

Good luck. Hope you can sort something out.:)