Bank refuses to give reference for leasehold purchase

TJM22

Hi, I am in the process of purchasing a holiday home which is leasehold, the leaseholder will requires a bank reference and the sale cannot proceed without it but my bank (Lloyds) say that this is no longer (since 2017) a service that they give to personal current account customers. I have tried to complain through their complaints service but they are brick walling me with the same old "that's no long a service we supply". Many other banks still offer this service.

Anyone with any advice on how to proceed?

Thanks.

user1977

Tell the freeholder your bank doesn't provide one and ask what else they'd accept? There's no obligation on banks to provide references.

Salemicus

Sounds like your bank doesn't provide that service. Logically, your options are:

• Move to a bank that does provide that service.
• Provide other proofs or references that would satisfy the freeholder.
• Find a different property, with a vendor who doesn't require such a reference.
• Set up a competing bank.

user1977

Salemicus said:

Logically, your options are:

• Move to a bank that does provide that service.
  

Though presumably any such reference would be "we have no idea, they weren't a customer of ours until last week"?

princeofpounds

Never heard of a bank reference... anyone care to explain what exactly it is and why it would be needed?

TJM22

Thanks guys, I've informed my conveyancing solicitor of the situation and hopefully she can sort out something with the leaseholders solicitor. I was informed that they would require a reference soon after starting the buying process last week but I wasn't aware that my bank would totally refuse to provide a reference.

Has anyone been in the same situation with Lloyds?

TJM22

This is the form Barclays use, if only it was as easy at Lloyds!

kingstreet

A bank reference simply says something like "KS - suitable for your numbers and purpose" or similar. Not seen one for nearly thirty-five years.

eddddy

princeofpounds said:

Never heard of a bank reference... anyone care to explain what exactly it is and why it would be needed?

The leasehold holiday home probably has significant monthly/yearly charges - maybe for rent or services.

The landlord wants the leaseholder's bank's opinion on whether the leaseholder is able to pay those monthly/yearly charges.

The last time I needed a bankers reference was many years ago, when I applied for a 'fancy' chargecard which had no monthly spending limit.

gab3x

Think about this for a while - do you really want to enter into an archaic contract such as this? Remember in leasehold you are just a tenant. What other onerous covenants exist there and will the buyer of your leasehold in future face simmilar hurdles in obtaining their bank references?

Thrugelmir

Days of a bank manager meeting their (personal) banking customers are long gone. Using Credit Reference Agencies would be the obvious manner in which you should be appraised.