Key Worker Living Home Buy Equity Loan 2004

AlisonA3506

Hi 
I borrowed £35,000 from Tower Homes in 2005 to purchase a key worker home for £230,000.  The property had a lease of 65 years. The loan amount represented 17% of the value. 

6 years later, my home is now worth much more but the lease has dropped to 49 years. 

L & Q, who took over the loans from Tower Homes (without telling any of us) are saying that the loan repayable when I sell and would be based on the estimated value of the property if it had a full lease.  .  Can they do this given that they bought into a property that already had a short lease?   Can they reasonable take 17% of the value, which is equivalent to an APR of 17%.   With the current lease my house is worth about £500k and with a full lease it would be worth about £600k.   If my calculations are correct, the increase in value from £230k to £500k is about 12% APR - happy to be corrected by anyone who can actually work these things out!   I am happy to sell at a price that reflects a short lease, by the way.   Is anyone else in the same boat with their Key Worker loan?  Finally, I thought we were told at the time that the loan was portable from one house to another, so long as you stayed a key worker.   I don't have the paperwork anymore and L & Q are saying the loan is not portable. 
Thanks

MovingForwards

Better off asking on the mortgage board, further down the forum.