Mortgaged property levelled

NameUnavailable

Wow tough lot!

I read it as that they bought the property and live / lived there, but had the idea to redevelop at some point in the future.

If that's the case then it would appear to be more a misunderstanding that this would affect their mortgage - yes they should have spoken to the lenders before knocking the place down but given the current situation, and LTV etc., I would probably just carry on and get the new place built asap. As long as they make their payments the lender isn't going to know any better.

diystarter7

eddddy said:

diystarter7 said:

NB to be clear the friend NEVER "lied" how on earth did you work that one out?

You said they lied...

diystarter7 said:

Their plans were always to level it and rebuild something bigger and better. 

They filled in application forms saying that they wanted a mortgage for a house to live in. But they really wanted a loan to redevelop a site.

Colloquially, that's called "lying". In legal terms it's called "making a false representation".


It's like telling a railway ticket seller that you're only travelling 2 stops, when you're really planning to go all the way to Edinburgh

Or telling HMRC that you only earned £20k last year, when you really earned £50k



Edit to add...

The situation might be less serious if they fully intended to live in the house when they made the application.

But they later decided to redevelop it, after the mortgage was granted.

(Not that I'm trying to put ideas in their head.)

My friend "lied" to the friend in the pub when the friend joked "I hope you told...", NOT the lender. I hope that helps.

No problem, thanks.