Mortgage offer incorrect...can we still sign?

jlaw4

Hi,

all our details are correct but they've put the property is freehold and its a leasehold... i told our broker that its leasehold with 721 years left.

However, the valuation report has freehold and i'm assuming the mortgage company has copied that as we had a home buyers survey independently which stated its leasehold.

can we still sign the agreement or does it need amending first?

kingstreet

This will be resolved by your solicitor and will usually result in a new offer being issued.

Is it Nationwide?

Every time I submit an application knowing the remaining lease term on a particular development is 246 years, the surveyor ALWAYS puts 85 years (Nationwide's minimum acceptable remaining term) on the valuation. I think they do this to trigger lender and solicitor dialogue.

jlaw4

No its bank of ireland but its so stupid because if i'd of seen the valuation report before this point i could have pointed out that its leasehold.

so do we not sign the offer and post it back? does it delay things a lot? we have to be out of our flat by the 14th June so can't afford many delays and as its a bank holiday it'l already be a day lost

kingstreet

You need to ask your solicitor to confirm the tenure to the lender if you have any concerns. It would be done as a matter of course, but I'm confident you would rather feel you are doing something to move this along.

Can't comment on dates/times etc.

glosoli

I had one recently where the report had to go back to the surveyor for amending, so it's very much worth raising the issue now to avoid delays.

minimike2

With it being such a long term a lot of lenders will just class it as freehold. I had a similar situation with my own mortgage many years ago. You do need to make sure and check though.

phillw

minimike2 wrote: »

With it being such a long term a lot of lenders will just class it as freehold. I had a similar situation with my own mortgage many years ago. You do need to make sure and check though.

I would definitely raise it, to avoid any accusations of fraud.

The length of the lease is not very relevant as they can usually be extended. If it's a long lease with egregious terms then that is considerably worse situation. Ground rent doubling every 5 years for example. Some are written to be purposefully complex so that the conveyancers and solicitors misunderstand them.