lease extension and the mortgage lender

magritte

I've just extended the lease for my flat from 90 years to 180 via the statutory route. The solicitor told me last year, when we started the process, that we didn't need consent from the lender to extend. 
Now that the lease extension is completed, am I required to inform my lender (or is there any advantage in letting them know)?
Or perhaps land registry will automatically notify the lender since they are listed on the title?
Thanks. 

D.L

I don't think you would need to inform the lender although there also wouldn't be any harm in doing so I'm sure!

blue_max_3

It would merely mean the loan had better security. However, if applying for further advances, it may be worth raising.

davidmcn

Your mortgage conditions will tell you whether you're meant to tell them. But as above, if all you've done is extend the term than that can only be to their advantage, so I doubt they'll complain about you not telling them.

magritte

Thanks all. I did a bit of research online but I'm unable to find a clear answer on whether I need to tell them now... and it looks like some websites even say I needed consent to extend the lease prior to starting the process (which contradicts what my solicitor said last year), but other websites say that I didn't need consent from the lender for statutory extensions. I don't have a copy of the mortgage T&Cs handy, I need to find them... pretty sure I saved them somewhere. 

To me it seems logical to inform the lender since they are listed on the title... perhaps that's part of the process of registering the lease with Land Registry? My solicitor's office has just confirmed that the lease completion took place last week but they have not applied yet to register the lease extension with LR, as they were waiting for some documents from my freeholder. They also said that LR will take a long time to register the lease (6+ months), apparently there is a backlog. 

eddddy

magritte said:

I did a bit of research online but I'm unable to find a clear answer on whether I need to tell them now... and it looks like some websites even say I needed consent to extend the lease prior to starting the process (which contradicts what my solicitor said last year), but other websites say that I didn't need consent from the lender for statutory extensions. 

You would only need consent from your lender for an informal lease extension - not for a statutory lease extension.

In the same way that your freeholder cannot block a statutory lease extension, a mortgage lender can't either.  But I guess there's no harm in telling the lender.

pancaketerrace

When I bought my flat 13 years ago the lease would have had 78 years left on it. Does anyone know if I should have been made aware of this by my solicitor? I didn't know anything about leases when I bought the place and didn't even know I had one. I only became aware of it recently and have just got through a very tricky, stressful and expensive (£23,000 total costs) extension. Considering what happens when a lease drops below 80 years should I have been made aware of the low lease? I'm looking for compensation for incompetent solicitors. It seems the solicitors I used, MHM Solicitors went into liquidation some years ago, but there's a My Home Moves solicitors just around the corner from where MHM were based. Sounds like they've just changed their name slightly. I'd be very grateful for any help.
Thanks Lucy.

rachel230

Within 6 years possibly. Sadly highly unlikely after 13 years. Many solicitors were/are guilty of not explaining leases properly.

davidmcn

pancaketerrace said:

It seems the solicitors I used, MHM Solicitors went into liquidation some years ago, but there's a My Home Moves solicitors just around the corner from where MHM were based. Sounds like they've just changed their name slightly.

You can't sue somebody just because they've got a similar (or even identical) trading name to the firm who were actually responsible. And I suspect you'll be out of time.

Must admit though it seems odd that you got through the whole process without even being aware it was a leasehold property you were buying. What were you told?

pancaketerrace

Thanks, it seems crazy they don't have to mention it. I thought that was what you pay the solicitors for! Do you know if there's an ombudsman I could contact? 

pancaketerrace

I don't think I was told anything about it being a leasehold property. I was 25 at the time (just good at saving money) didn't know anything about buying/owning property. I used the mortgage advisor that worked with the estate agent selling the property and also used the solicitors they advised me to use which was MHM. I feel like they sort of took advantage of my naivety rather than helping me.