Finding new build financing with mortgage broker, Deal Direct.
Mortgage broker, Deal Direct, has helped many clients with finding and securing the right mortgage for their dream property.
For as many clients we’ve successfully dealt with in sourcing financing for their ‘character’ property, we’ve also helped just as many with the purchase of their new build.
Unfortunately, with new build’s, a loophole in the Commonhold and Leasehold Reform Act means that builders have been selling homes with a lease. This recent happening is a means for builders and developers to make more money from property purchases.
Normally a house, new build or otherwise, is sold freehold but the loophole allows the builder/developer to create a lease situation. This, in turn, allows for unfair increases in ground rents or the sale of ownership of the land to a third party without prior knowledge or consent of the lessees.
For homeowners, this was an added a level of uncertainty. However, in a move that has been backed by the Government, the practice of unfair leasehold charges could soon be banned. The move has been endorsed by The Conveyancing Association who want to see that consumers are protected.
Whether the property you are considering is subject to a lease or not is information required by your mortgage lender for the purposes of assessing your application. The length of the lease, plus its associated terms, conditions and charges, could make the difference between your application being accepted or rejected.
For further advice on financing new builds, consult the experts, Deal Direct.
Call an advisor today on 0800 048 8828.
