Can anyone recommend a lender?

Andrew_Ryan_89

I am at my wits end and probably just going to give up. Mother has a property that was interest only, term came to an end and she needs £40,000 to pay off the mortgage. House is worth well over £300,000. Initial issue was that it had less than 60 years on the lease but after a long hard look, NatWest agreed to re-mortgage the property on a 5 year term. However, when it came to the surveyor, he valued it at £0 saying that only a cash buyer would be interested and mortgage was withdrawn.

The decision was stupid, especially as you can get a similar amount unsecured. We appealed though the broker but it got declined.

Any suggestions what other lender we can try?

ACG

The lease is below Natwests (and most lenders minimums) and definitely will be at the end of the term.

You are going to struggle to place this I think, is the value really £300k on a 60 year lease? That would mean the value on a 99 year lease would be significantly more. I am surprised an application was made to natwest in the first place.

How old is your mum? How much it cost to extend the lease?

kingstreet

There's a guide to what lenders accept in the CML Handbook. The solicitor can look at this.

I did one not so long ago with 56 years remaining. IIRC the lender was happy with mortgage term + 30 years.

We remortgaged and bought the freehold two years later.

rhysadams

I'd suggest using a specialist mortgage broker, there are quite a few on the internet. My mum had a very similar issue, she only needed to remortgage for 30k but the lenders weren't interested.