Mortgage on Leasehold Purchase

1. If required you should submit the mortgage application at the commencement of the purchase as this can take four weeks or more before the lenders issue with a letter of offer.
2. The mortgage application should be accompanied by a cheque to cover the lenders valuers fees.
3. We act for the major building societies and banks and should receive instructions to act on their behalf at the same time as you receive your letter of offer.  This reduces your legal costs and allows us to expedite the transaction for you.
4. If we are not permitted to act for your funder (as we are not on their panel) then you will need to instruct separate representation.  We will then liaise with the funders third party solicitors throughout the process.
5. If instructed for the lender we will then ensure that we comply with the lenders instructions in accordance with the Council of Mortgage Lenders Handbook which involves ascertaining that certain searches have been submitted and relevant enquiries raised, and points of concern have been raised with the lender.
6. If the lease requires we will need to gain your landlord’s formal consent to register the charge against the property.  There will be an administration fee for dealing with this document and may be additional legal fees if the landlord involves their appointed solicitors.
7. After exchange of contracts and prior to completion it is necessary for you to sign your mortgage documentation including your mortgage deed and any ancillary papers.  At this stage we will report to you on the salient terms of your mortgage offer.
8. We will then provide your lender with the required Certificate of Title and make a request for funds to be drawn down on the completion date.
9.  We will then use the funds upon completion to complete your purchase.
10. After completion has taken place we will register your mortgage lender’s interest with the Land Registry.

How long it will take for your mortgage to be completed will depend on a number of factors such as how quickly your lender deals with your mortgage application. How quickly you can instruct valuation or building survey on the property and the length of the conveyancing process. The average process takes between 8 to 12 weeks it can be quicker or slower depending on the co-operation of a number of parties in the conveyancing chain.

• Compliance with restrictions on the property title
• If the mortgage is not a “first mortgage” on the property
• If a deed of priority or any ancillary documents are required to the main transaction
• Unforeseen complications arising
• If documents requested from the client have not been provided and we are chasing for these