Mortgage

[JJboo]

Hi all has anyone got a mortgage with a house that has estate rental charges. I had nearly completed getting a mortgage and was just about to get a completion date but my solicitor at the last minute found out from the sellers solicitors that the sellers house has an estate rental charge. I’d never heard of this before and after doing some research found out that lenders Do Not Like It! My solicitor has emailed the lenders to check they will still lend but I’m so nervous and don’t want to have to start all again. I’m so angry that the sellers didn’t mention this at all and we were just about to set a completion date! The lenders I’m using is Halifax please someone ease my mind 🥹

Like a ground rent? Is it a leasehold?

It’s an estate rental charge so we would have to pay a yearly amount to a management company. No the house is freehold

I have. It made no difference to my mortgage offer at all. I did buy it new though so was all sort of part of the package. I've no idea if that makes a difference!

Oh that might make a difference this house is old so I think new houses would have a better policy for it but I don’t know that much about it just stressing me out that they told us last minute like why

I had no problems with this, we were with Santander, it’s fairly common where I live.

however, when selling I bought the rent charge out. It took about 6 weeks start to finish and was very easy to do.

https://www.gov.uk/guidance/rentcharges#how-to-redeem-your-rentcharge

We had to get a deed variation done. It annoyed me quite a bit as mortgage company told solicitor it was needed, we rushed to get it sorted and finalised and then found out the solicitor didn't actually need to provide it back to the mortgage company and had actually already called the funds down! So it could have actually been finished in the post completion phase.

More detail required.

If the estate charge is a sensible amount, with controls over how much it can increase by then you might be ok.

If there aren’t any limits on how much the charge can increase by, then mortgage companies won’t like it at all.