Mortgage Rejected Due To Leasehold Ground Rent ....

eddddy

SteeleyScott said:

And remind me the advantage of going the statutory route oppose to the informal route?

For some reason in my head based on the discussion and resarch i'd done the statutory route seemed like it'd take much longer and often wasn't the preferred option?

With the informal route, there are no rules. You're at the mercy of the freeholder.

So for example:

• The freeholder can set any price they like for the freehold
• The freeholder can refuse to sell you the freehold
• The freeholder can charge you any valuation fees, admin fees, etc that they choose
• The freeholder can "mess you about" to an unlimited extent for an unlimited amount of time (changing the price, changing their mind about selling the freehold, delaying etc)

So a 'dishonourable' freeholder might try to 'lead you along' for 6 months or more - hoping that you'll become so fed-up desperate that you'll pay silly money for the freehold.

Or a disorganised/disinterested freeholder might take 4 or 6 weeks to reply to each question / email / letter etc - so 6 months or more passes and you realise you're not really getting anywhere.

But an honourable, organised freeholder might get everything sorted in 2 or 3 weeks.


One approach is to try going down the informal route for 4 to 6 weeks to see how things progress - then decide if you want to change to the statutory route. (But you'd potentially lose any valuation fees etc you'd already paid.)


These are all the options that an experienced specialist solicitor would discuss with you.

(But I prefer not to recommend specific solicitors.)

SteeleyScott

Fair enough - thanks, I probably mentioned this is already, but this is attached to the sale of the property, so some valuations have already been done.

I guess we will see what they come back with. I asked my solicitor this morning (the ones who've already began doing the conveyancing part regardless) "what are you generally looking to change when you proceed with a deed of variation?" They said for variation on houses they basically do an extension of X and a lowering of the annual rent to sub £250. 

Obviously my next question was, on average so far what sort of funds are freeholders generally asking for upfront in light of this? with heir legal costs aside. I want to know that because if its only say, £2k more to just purchase the freehold....then its an obvious decision...

They simply answered it massively varied and didnt want to speak to an average. But they have made a note to acquire a cost for both avenues when they engage with the freeholder and report back with the numbers they get, until then I guess i'm on hold, as are the buyers.