Advice needed as Vendor refuse to take house off the market

kkoma

L&C advised me that if the freehold is not completed, once the lender checked and found out it is leasehold then the application will be rejected so they put a brake on the application till freehold issues is done.

FBaby

So you need the freehold to proceed and they need assurance that you'll get a mortgage. It is not surprising they would keep in on the market, they have no guarantees whatsoever that you are in a position to buy.

Surrey_EA

kkoma wrote: »

L&C advised me that if the freehold is not completed, once the lender checked and found out it is leasehold then the application will be rejected so they put a brake on the application till freehold issues is done.

I would have thought that the only information that will be given to your lender about the leasehold/freehold status of the property you are buying will come from your solicitor, who will also be acting for your lender.

Therefore, your solicitor will be able to inform your lender of the situation with the freehold.

kkoma

I would have thought that a DIP will show that my finance is in place and I am proceedable even though it is not 100% sure with DIP. I can understand the reason why they want to keep it on the market but isnt it unfair if I have to spend a fortune on mortgage application, survey and solicitors then got gazumped cause they are looking for higher offer by keeping it on the market? At least I would want it taken off the market before I submit the mortgage application.

davidmcn

Surrey_EA wrote: »

I would have thought that the only information that will be given to your lender about the leasehold/freehold status of the property you are buying will come from your solicitor, who will also be acting for your lender.

Therefore, your solicitor will be able to inform your lender of the situation with the freehold.

Exactly, the tenure at the time of completion is what's relevant, not what the position is at the date of your application.

Hoploz

I agree with all that's been said so far.

I am wondering, however, about this freehold purchase. Has this been discussed between your solicitor and theirs? I only ask because you must be sure that this isn't estate agent twaddle. Sometimes they can lead people to believe things are in hand when they aren't. (Either because they are lying in the hope it will be sorted by the time you lose patience, or because they've got the wrong end of the stick, or simple wishful thinking!)

If it were me I'd be getting some cast iron guarantees that this is in hand. Otherwise, as you point out, you won't be buying this place as you won't get a mortgage on it with the short lease, so you'd need to be free to look elsewhere.

marksoton

I actually disagree with most. Chances are the vendor is going to have to extend the lease no matter who they sell to.

Who'd get a survey on a property they're not sure they can get a mortgage on?

To my mind you're being played, i'd start looking elsewhere.

Elfbert

Are they seriously going to sell it to you at the same price, when first of all it had a very short lease and now you're getting the freehold (or at least an extended lease)?? Sounds very odd, if so. Are you sure they're not going to put the price up loads now?

shortcrust

My seller sold to me with a lower offer because he felt bullied by the woman who offered more. She told him that her offer was higher than she would offer in closed bids and would be withdrawn if it wasn't accepted and the house taken of the market by the end of the day.

Softly softly catchee monkey and all that.

POPPYOSCAR

Elfbert wrote: »

Are they seriously going to sell it to you at the same price, when first of all it had a very short lease and now you're getting the freehold (or at least an extended lease)?? Sounds very odd, if so. Are you sure they're not going to put the price up loads now?

Yes sounds odd to me as well.

Properties that have a short lease are hard to sell because of getting a mortgage. To increase the length of the lease is usually quite expensive.To get the freehold even more so.

Anyway, they cannot be forced to take the house off the market and even if thy do it may not prevent another offer being made.