Leasehold mortgage

Kirkii27

Hi, we may have to go with a broker with our situation but I really wanted to try and save on broker fees as we got quoted £995. 

So the property is a leasehold with 17 years left on it but we are buying the freehold at the same time (freeholder has agreed to sell it to us) I have spoken to a solicitor and to the bank and they said the solicitor needs to prove that we are buying the freehold.

We need an 80k mortgage. The property is up for 63k the freehold is 67k if the property was freehold it would be around £125-£130k. We also need to pay our fees and the freeholders fees hense why I’m trying to do this without a broker! 

On a mortgage application would I put the property down as a freehold or a leasehold?

If I put leasehold do I put 63k or do I put 130k if we are purchasing the freehold.

Also the lady who owns the house isn’t ready to move right now (also needs proof her property has an offer put it for when she views properties herself) she hasn’t found a property she looking to move 3 hours drive away and she said she would like us to get the ball rolling and do a mortgage application so the property can be valued etc and to see if we can get a mortgage for it... would the mortgage offer be there in three months time still if accepted??

lonibra

No offence, but this does not look like it's going anywhere. For a leasehold house with barely 17 years left on the lease, the price of 63k as excessive.

You could try one of the free MBs though j think they'll fob you off.

If you are insistent on going direct, just call up and ask the bank what to put this down as - leasehold or freehold. Also do ask them if they will lend as described. This doesn't sound like something all banks will look at.

And all this is with a flakey seller who wants to get her options laid out at your time and expense!

Do let us know how you get on, sounds interesting.

Kirkii27

I’ve just spoke to NatWest who won’t lend on a 17 year lease left. It wouldn’t have a lease if we bought it though as it would be a freehold. 

One broker said we can do it but the actual banks are saying we can’t. Ahhh