Restrictions on nationwide repossessed house and mortgage with Natwest

MikeDC

Hi,
I could do with some advice,
I am trying to purchase a house that is being sold through an estate agent.
It turns out the house was repossessed by nationwide.
I had my previous mortgage with Natwest 20 years ago and they had approved my new mortgage for the house I want to buy now.and I had my offer letter.
I instructed my solicitors and surveyor etc and already have spent money on the new house purchase. I am due to exchange contracts this coming Thursday.
My solicitors received a mail from Natwest yesterday saying Natwest will not give me the mortgage on this house now as 
Nationwide will add a restriction to the title that says I cannot sell the house within 4 months of purchasing it without giving Nationwide notice. After 4 months this restriction would come off the title.
I am not concerned about this restriction myself as I want the house to live in, I do not want to sell it.

I cannot get Natwest to honor their offer and Nationwide are point blank refusing to remove this restriction being added to the title.

Has anyone come across this before and if so is there anything I can do ?

Regards
Mike

Robin9

What is wrong , in your eyes, with the 4 month resale restriction. 

Do you want to resell within 4 months ?

molerat

Robin9 said:

What is wrong , in your eyes, with the 4 month resale restriction. 

Do you want to resell within 4 months ?

OP states they are not worried about the restriction but their lender will not offer a mortgage with that restriction on the title.

I am not concerned about this restriction myself as I want the house to live in, I do not want to sell it.
I cannot get Natwest to honor their offer and Nationwide are point blank refusing to remove this restriction being added to the title.

Time to speak to a broker I think.

user1977

What’s your solicitor’s advice? Haven’t they encountered it before?

it would seem rather unlikely that a new lender would want to (or even be able to) immediately repossess and complete a sale within 4 months, so can’t see it’s a great risk.

london21

Surely this has happened before and the repossession has nothing to do with you..

Your solicitor should be able to advice you.

Hopefully able to proceed with exchange. 

molerat

user1977 said:

What’s your solicitor’s advice? Haven’t they encountered it before?

it would seem rather unlikely that a new lender would want to (or even be able to) immediately repossess and complete a sale within 4 months, so can’t see it’s a great risk.

Again missing the point.  Natwest will not lend on the property with the restriction placed by the current owners, Nationwide.

silvercar

I would guess that NatWest haven't clearly understood that the restriction is only for 4 months. All they see is another lender imposing a restriction and don't see that it is only for a few months.

Either you, or your broker or solicitor need to persuade NatWest that the restriction is only for 4 months or you need to persuade Nationwide to remove the restriction and instead accept an undertaking from you not to sell for 4 months.

Sounds like Nationwide are suspicious that you have a back to back sale lined up for a higher price.

user1977

molerat said:

user1977 said:

What’s your solicitor’s advice? Haven’t they encountered it before?

it would seem rather unlikely that a new lender would want to (or even be able to) immediately repossess and complete a sale within 4 months, so can’t see it’s a great risk.

Again missing the point.  Natwest will not lend on the property with the restriction placed by the current owners, Nationwide.

Not missing it at all, I'm querying why they won't lend and why the OP is asking us rather than their solicitor. 

kingstreet

In my 39 years in this business I've never heard of this before.

Neilos9

user1977 said:

molerat said:

user1977 said:

What’s your solicitor’s advice? Haven’t they encountered it before?

it would seem rather unlikely that a new lender would want to (or even be able to) immediately repossess and complete a sale within 4 months, so can’t see it’s a great risk.

Again missing the point.  Natwest will not lend on the property with the restriction placed by the current owners, Nationwide.

Not missing it at all, I'm querying why they won't lend and why the OP is asking us rather than their solicitor. 

Its odd, why ask a question on a forum......  Jeez.

MWT

kingstreet said:

In my 39 years in this business I've never heard of this before.

This feels like someone or something at Natwest is misunderstanding the nature of the restriction, so it should just be a matter of talking to them, but I'm guessing there is no broker in the mix here and the solicitor does not seem to be proactively pushing back on this...