RTB landlord

ukman2012

After having spoken to my housing associations and letting them know that we needed some more space in the property and that it was cheaper than moving, we decided that we were going to explore a loft conversion.

Because we are within the 5 year clause, we spoke to our Service Manager who is no longer at the company of our intentions. Was told that a loft would in fact add value to the property.

Fast forward today, our existing mortgage company are wanting to borrow the money but the housing association are asking for paperwork that the lender is saying is not needed, but to be safe I sent them all the paperwork.

All the bank needs them to do is confirm that they have been made aware of the extra borrowing, now they want extra document, full quotes, and now i'm quoting them "Furthermore, we can only grant consent to the further advance if the reason for borrowing is an approved purpose as specified in Section 156 of the Housing Act 1985 (as amended by Section 120 Leasehold Reform, Housing and Urban Development Act 1993)" being told that a loft conversion is not deemed as home improvement.



WTHeck

silvercar

I’ll move this to the housing board.

Bookworm105

why is the mortgage company wanting to borrow money, they lend money, not borrow it 

ukman2012

apologies, we are borrowing from the halifax, have passed all their checks, just need the housing association to agree to the fact that they will have first charge, which they already have when the re-mortgage was done.  Since the house was bought and work that we have done to the house, its valuation has double, if we were to go broke tomorrow and couldn't afford the mortgage, they would still be able to recoup their discount. The Loft conversion would also increase it a further 50% but for some reason the Housing association can't give a proper reason as to why they won't authorise, but all of sudden saying a loft conversion is not Home Improvement and when ask to explain why or send their policy document, they go quiet.