Special conditions in mortgage offer

coronita

Hi all,

Complete newbie here. Been reading a lot of useful information on here since OH and I started our flat buying process. Could really use some advice now.

First time buyers and just received our mortgage offer today, but unfortunately there's a couple of errors.

First of, they have listed a wrong conveyancing firm in the offer letter. This may have been partially my own fault and I am hoping this could be corrected over a matter of a phone call from our broker (although the thought of our offer letter that contains confidential information going to a solicitor firm not at our service is making me biting my nails slightly).

Secondly, and this is what worries me a bit more, the letter states a few special conditions, one of which reads: 'the flat is subject to a lease which has 200 years still to run at a ground rent of £165 each year'.

Now our lease has about 247 years left but the ground rent is actually £425. I know it's only a few hundred pounds difference but does this mean the lender will need to reassess affordability?

Sorry for the long post but can't bear the pain of having to wait till Monday to get some reassurance from our broker. Any here or advice is greatly appreciated!

Thanks in advance.

davidmcn

coronita wrote: »

First of, they have listed a wrong conveyancing firm in the offer letter. This may have been partially my own fault and I am hoping this could be corrected over a matter of a phone call from our broker (although the thought of our offer letter that contains confidential information going to a solicitor firm not at our service is making me biting my nails slightly).

Are you preferred solicitors on the lender's panel? If so then this shouldn't be a problem to fix. And the "wrong" solicitors aren't going to be in the slightest bit interested in your confidential information - I'm not sure what you think they're going to do with it!

Secondly, and this is what worries me a bit more, the letter states a few special conditions, one of which reads: 'the flat is subject to a lease which has 200 years still to run at a ground rent of £165 each year'.

I expect that's just an assumption which the valuer has made (if they haven't seen details of the lease). Yes, they'll need to reconsider the valuation based on the actual lease term/rent. Might change it a bit, otherwise I can't see the lender having a problem.

coronita

Thank you davidmcn. It gave me some relief what you said.

My own solicitor is still on lender's panel. Not assuming the wrong solicitors will do anything with my mortgage offer, just prefer it not to be seen by anyone irrelevant

The ground rent is more like a typo in the initial mortgage application form. I spotted earlier on and pointed it out to the broker. The broker said it doesn't matter and they've corrected it but obviously that's a lie.

I searched on here similar topics but seems like most people have 'repaying remaining debts' in their offer conditions. Not sure the lease and ground rent is a common one. So are you saying that it's not our affordability but more likely the valuation the lender will re-assess?