Mortgage approved - rentcharge

Good afternoon, 

I am in the process of buying my own home with my partner for the first time

we got told by the current owner that the property is lease hold with a ground rent of £18pa 

we have had our mortgage approved with this information and all the searches & surveys etc have come back good 

We enquired with the solicitor how it was all coming along, 

to which they have revealed that the property is in fact freehold with a rentcharge of £18pa 

They have advised that they will have to report the rentcharge to the lenders(Santander) for approval which may carry a risk of the mortgage then being refused

or we could pay off the charge which currently stands at £400+ 

What are the chances of the mortgage now being refused over £18pa?

or are we better to take the bullet and buying out the rentcharge 

so annoying 

Comments

  • tink_1983
    tink_1983 Posts: 319
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    For 400 I'd buy it out. We had a buyer drop out as his lender would not accept rent charge wording on the free hold deed
  • K_S
    K_S Posts: 6,671
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    I can't tell you what to do but I agree with MWT above. If you can indeed buy off the rent-charge for £400, that would be something to strongly consider.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • Thanks for the replies, that was the route I was thinking, 

    £400+ is the figure the solicitor has quoted, 

    I think we are both just getting impatient about the waiting and I’m guessing buying this out will add more time onto completion 
  • lonibra
    lonibra Posts: 365
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    Just 400? Go for it. Banks don't like rent charges and you'll thank yourself later when it comes to remortgage or selling time.
  • ACG
    ACG Posts: 23,624
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    Forumite
    It is not the £18 a year, it is the fact it is a rent charge - that being said, I have only come across one of these and it was not a problem. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • great thanks for the replies,
    we have decided to buy out the rentcharge and put it back in the solicitors hands  
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