Mortgage offer withdrawn

smileigh

10 weeks on from offer accepted and mortgage offer being made, my lender has withdrawn my mortgage offer today! So frustrating as my solicitor said we were almost ready last week... From what I can gather, this is because of the lease documents stating that ground rent will double every 25 years. However, the bank haven’t been in touch and I only know it was withdrawn because my solicitor was notified. I know this is all in the solicitors’ hands at the moment but has anyone got any words of wisdom or ideas about how this may go? The property is not a new build but the freehold is owned by a small property company.

datlex

You could try ringing the mortgage company or popping in to see them. They might be able to give you more information as to why the offer was withdrawn.

eddddy

smileigh wrote: »

From what I can gather, this is because of the lease documents stating that ground rent will double every 25 years.

Some mortgage lenders are getting uncomfortable about ground rents that double every 25 years.

It used to be only ground rents that doubled every 10 or 15 years that were a problem.

You might find another lender who's prepared to lend, but you might then have problems when you sell.


... Although you could buy, and then do a statutory lease extension to get the ground rent down to zero. But that might be expensive.

smileigh

Thanks for your reply. The lease was extended in December so I imagine lease extension isn’t possible. The ground rent is less than £200 for the next 25 years... no word from solicitor today so I’m feeling quite disheartened.