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Natwest withdrawn mortgage offer 2 months later –!ground rent
the-baby-beatbox
Posts: 9 Forumite
Hi there,
Wondering if anyone can offer any advice re a tricky situation we're in with Natwest.
My partner and I are buying a residential property above a commercial property. We had a mortgage approved with Natwest over two months ago and today the deeds were signed over by the seller. While we were celebrating, Natwest have decided to withdraw the offer.
The valuer says this is because the ground rent increases after 25 years and our mortgage term is 30. We have said we will take out indemnity insurance and are waiting to see if they'll change their minds.
Does anyone have any experience of this? We'd love to hear a positive story. We really thought we'd reached the final hurdle today and now feel deflated. We had our offer accepted early February so this has been going on a long time and we just want to be in our new home!
Thanks!
Wondering if anyone can offer any advice re a tricky situation we're in with Natwest.
My partner and I are buying a residential property above a commercial property. We had a mortgage approved with Natwest over two months ago and today the deeds were signed over by the seller. While we were celebrating, Natwest have decided to withdraw the offer.
The valuer says this is because the ground rent increases after 25 years and our mortgage term is 30. We have said we will take out indemnity insurance and are waiting to see if they'll change their minds.
Does anyone have any experience of this? We'd love to hear a positive story. We really thought we'd reached the final hurdle today and now feel deflated. We had our offer accepted early February so this has been going on a long time and we just want to be in our new home!
Thanks!
0
Comments
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What are the ground rent increases after 25 years?
what is the ground rent now?
Before you look to insurance, it would be good to sense check the current position.
Edit - in the meantime i have checked Nat West's requirements which are quoted below
"We have no objection to a lease which contains provision for a periodic increase of the ground rent provided that the amount of the increased ground rent is fixed or can be readily established and is reasonable. If you consider any increase in the ground rent may materially affect the value of the property, you must report this to us (see part 2)."
N.B. if the ground rent exceeds £250 per annum (£1000 per annum for London properties) you must confirm that the terms of the lease in relation to the ground rent are acceptable. We can then approach the valuer to confirm whether the cost of the ground rent would affect property suitability and marketability.0 -
Can you take out insurance to protect against something that WILL happen? What would you be insuring?
Are you sure it is the fact that the ground rent will increase in 25 years and your term is 30 years? Usually it is more the fact that it will increase and it can affect the saleability of the property.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
How much is it now and what is the terms for the increase?Those who risk nothing, Do nothing, achieve nothing, become nothingMFW #63 £0/£5000
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insurance is a red herring here. Let's get the facts relating to the lease first.0
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Can you reduce the mortgage to 25 years?0
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