Dispute with Mortgage Lender over project?

[Ferdinand]

1 hour ago, K78 said:

 I’m 100% sure. Rules are bent and broken all the time. Fake offers, viewing etc. 

 

As long as the property is advertised with a 28 day notice of the final price. The agent is covered. 

 

The normal process I have seen here is that it Is advertised by the agent with the best price so far, and a deadline.

 

And that normally they go for the best price where they are confident that the purchaser can deliver.

 

I am sure that there are places where a wad of notes will get the deal, just as it can get you the best position on an estate, or a drop kerb when they are working in the road.

Edited May 17, 2019 by Ferdinand

[K78]

57 minutes ago, Ferdinand said:

 

The normal process I have seen here is that it Is advertised by the agent with the best price so far, and a deadline.

 

And that normally they go for the best price where they are confident that the purchaser can deliver.

 

I am sure that there are places where a wad of notes will get the deal, just as it can get you the best position on an estate, or a drop kerb when they are working in the road.

 

They have to be advertised weekly and final 14 day notice advert when a offer is accepted. 

 

It is simple to work around. 

 

 

[Bitpipe]

We had a similar challenge  - had planning in place to knock down and rebuild but only thought to mention it to the lender (High St supermarket brand) a few months before commencing.

 

We had signed a 5 year fixed deal with a hefty repayment penalty the year previously.

 

We'd ruffled a few neighbourhood feathers with our plans (funny how they all love it now it's finished and landscaped) so were worried that someone would dob us in.

 

Anyway, called the lender and said we were undertaking some 'building work', they asked for plans and all went quiet. A few weeks later we get a call & letter saying 'do not do ANY work until you get our explicit approval) and then nothing for a further 12 odd weeks, despite me chasing.

 

Eventually they said no and that to continue, I'd need to redeem the mortgage and take out another with a different lender. Then they changed their mind. Then they said no again as I wasn't using a main contractor but was PMing it myself.

 

Bottom line was that they felt that their asset, against which we had borrowed was at risk should we default - even though the land value alone exceeded the amount we owed them.

 

They did however agree to waive the £15k redemption fee so we redeemed the mge with the majority of the build fund and I was able to get a self build mge with Ecology which paid for the works. When that ran its course we remortgaged to a standard lender.

Was stressful but not catastrophic  - cost us a bit in fees and higher interest rate but glad that we told them as the alternative could have been ugly - I didn't want to call their bluff.