End of mortgage term not allowed to extend due to cladding and no EWS1

Bear01

Hi, hoping someone can offer some advice.  I have a flat where the mortgage term is due to end this year and the lender (Lloyd's) will not extend it because there is no EWS1 form yet available.  The process has begun to obtain an EWS1 form but it will not be available until next year following remedial action, this is beyond the end of term of the mortgage.  I cannot sell the property as no-one will mortgage it without an EWS1 form unless sold to a cash buyer at a significant discount, even that has proved fruitless.  Does anyone know of other avenues to try and persuade the lender to extend the mortgage term or re-mortgage.  Based on the market value there is approximately 40% equity in the property.  Thank you.

Thrugelmir

Closer to the end of the mortgage term you may well find LLoyds more accomodating. There's no reason for them to take any action yet. 

MWT

Is this a BTL interest only mortgage?

Bear01

It is a residential mortgage with permission to let. They will not let me remortgage to a BTL or residential.

Bear01

Thrugelmir said:

Closer to the end of the mortgage term you may well find LLoyds more accomodating. There's no reason for them to tak any action yet. 

Thrugelmir said:

Closer to the end of the mortgage term you may well find LLoyds more accomodating. There's no reason for them to tak any action yet. 

The term ends in Sep 21.

MovingForwards

Do you mean the fixed rate term or the actual mortgage ends?

Bear01

The actual mortgage ends.

MWT

So given this is a residential mortgage and presumably interest only, the plan has always been to sell it when the mortgage reached term?

I suspect as suggested by Thrugelmir, you'll find them more accommodating when you get a little closer to the end as they have no desire to be trying to sell an essentially unsaleable property either...

If you had no other source of funds planned to clear the mortgage I don't think you have much option but to wait a bit longer and talk to them again...

annetheman

MWT said:

So given this is a residential mortgage and presumably interest only, the plan has always been to sell it when the mortgage reached term?

I suspect as suggested by Thrugelmir, you'll find them more accommodating when you get a little closer to the end as they have no desire to be trying to sell an essentially unsaleable property either...

If you had no other source of funds planned to clear the mortgage I don't think you have much option but to wait a bit longer and talk to them again...

This rings true.

Sorry to hear about yet another person trapped due to EWS1 and years of systemic regulatory failure. 
I haven't heard of anyone in a situation with a mortgage term coming to an end but I doubt you are the first/only; given that you won't be able to sell it at the end of the term without the EWS1, they'll likely be open to discussing solutions with you.

Please, if you remember to, come back and post the outcome of your discussions? Cladding Action Groups collate all sorts of anecdotal evidence in lieu of any meaningful govt action to resolve the many knock-on issues that have affected leaseholders since Grenfell. Maybe join one local to you or the UKCAG (edit to add: Twitter/FB) as they are full of people who have been dealing with this for years and might be able to advise.

Best of luck.

dimbo61

So is this a repayment mortgage or Interest only ?
Have you got tenants in the property ?
How long have you owned the property ? 
Why have you not paid off more of the mortgage if your coming to the end of the term ?

Bear01

IO mortgage
Has tenants
20 years
Sale was the plan but EWS1 and COVID scuppered that!