Residential Management Group (RMG) Contract Vs Lender (HSBC)

Natbag

Has anyone successfully bought/is buying a property subject to a RMG estate management fee contract and been able to secure a mortgage?
HSBC will not lend at all, not even with an indemnity policy, unless there's a deed of variation - which the company is reluctant to agree to.
We are desperate to resolve this any way we can, whether it's change the company's mind or find an alternative lender, as we risk losing our house purchase/sale as do the other 5 parties in the chain below and we would not be in a position to try and buy again. There's also the fact that this house would be rendered unsaleable. 
Any help appreciated!

SallyDucati

Is there a sort of rent charge fee that HSBC are concerned about?  

Looks like RMG are the company whoever controls the communal areas of the estate has appointed (as RMG are a particular company).  I imagine RMG themselves aren't HSBCs issue, but what is in the contract that you have to pay to some company annually for upkeep of communal areas.

eddddy

So is the property leasehold or freehold?


It sounds like there is a condition in the lease (or deed of transfer) which HSBC are unhappy with. As a starting point, you need to find out what that specific condition is. (Your solicitor should have told you.)


Often it's a problem with an onerous (i.e. very high) ground rent. 
Or it could be a problem with an onerous (i.e. very high) service charge, but typically, that can't be rectified by a deed of variation.
Or it could relate to the action that can be taken against you, if you get into arrears (or break a covenant)


It's quite likely that the issue is with a freeholder rather than with RMG.


So essentially, there is something that's 'bad' in a lease or deed. You should find out what it is before looking for another lender. You might not want to buy the property at all when you find out what the bad condition is.

princeofpounds

I know a block managed by RMG (not that well, not that badly) and people are buying and selling there all the time. So whatever it is, as the others say, the issue is unlikely to be as your describe.

The fact that the apparent solution is a deed of variation indicates that it is a problem with a term in the lease. 

RMG will manage on behalf of a freeholder and ultimately something like that would be their call. Who is your freeholder?