We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Remortgage & majorworks debt on leasehold didnt declare now worrie

Hi, i am in the final stages of a remortgage just about to set the completion date (offer accepted, redemption info) and my solicitor has now contacted the council who i have a leasehold with for information on service charge and insurance.

I rather stupidly hadn't included the debt i have for some majorworks that were carried out a couple of years ago of around on the building of £11,500. Do you think this will stop the remortgage going through?

It wasn't asked for on the form directly only service charge, but i did include my credit card debts. I haven’t started actually paying anything to the council yet, and they haven’t pushed it hard either, although about a year ago i did enquire about different payment options so i partly didn’t want to trigger anything.

Last year i was successful in getting a remortgage with Halifax for a much larger amount (which i kept open for 1 year) but i eventually decided that i didn;t want to take out the remortgage. Anyway i mention this is, as the major works debt never came up and it wasn't an issue. I guess i stupidly believed it would be fine this time around as well.

I have been now asked to pay £130 directly to the council as they have emailed back to the solicitor saying they charge for providing information.

I'm taking out £25k equity so i could potentially pay off the debt with half of the equity release, i got it out 'for renovations'. They have already sent me an 'undertaking to pay' the credit cards which i had to sign. My affordability is good, great credit rating, my mortgage payments are fairly low and i have a lot of equity left in the property. Could it retrigger an affordability with the lender?

Do you think this will stop the remortgage going through? Should i call and own up to the solicitor and offer to pay the debt with the equity if i have to?

I'm so worried about this and how best to handle the situation. Does anyone have any advice, any help would be much appreciated?

Many thanks!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.5K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.5K Spending & Discounts
  • 245.5K Work, Benefits & Business
  • 601.4K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.