Ash100 and Woolwich Mortgage

[Ash100]

Hi mrw

 

I have a Woolwich mortgage and I’m wondering if I will have a similar problem to you. My flat is a leasehold and I was about to get a lease extension which requires Woolwich to approve via a Deed of Substituted Security. Apparently getting this deed is very routine – but I’m wondering if Woolwich will take this opportunity to make me change to a repayment mortgage. If you making a simple phone call can make them switch, then surely a change of lease (albeit a longer lease which makes their loan even more secure) is definitely a change of circumstances?

 

Given your experience how likely do you think it is they will claim this is a change of circumstance?

 

Also has anyone extending a lease has had this problem – i.e. the mortgage company take it as an excuse to change the goal posts? Thanks all.

[slick132]

Hi Ash and welcome to CAG

 

I've moved your post from this thread - http://www.consumeractiongroup.co.uk/forum/showthread.php?333627-Woolwich-Mortgage-complaint&p=3677237&viewfull=1#post3677237 - to here so you have your own thread to use.

 

Unfortunately, MRW did not come back and let us know how that case was resolved.

 

However, I think it unlikely that you would have a similar problem. Even if you did and they altered your mgge a/c without your knowledge or approval, you could complain and have the mgge put back as it should be.

 

I think MRW's case was a one-off and you should not be too concerned about this happening again. However, you will know to make sure you take measures to see it doesn't happen to you.

 

Let us know how it goes with your mgge a/c.

 

[Ash100]

Thanks for that Slick132. I've consulted a few lawyers who are experts in lease extensions and they had various opinions about this. But finally I found one who said that there was a way of extending the lease without needing the mortgage provider's approval. As I understand it you create a head lease (i.e. an additional lease). Then when you come to re-mortgage or sell, the two leases are merged which is apparently a very simple process. So that's is what I'm going to do - hope this helps anyone esle in the same position.

[slick132]

Hi Ash and thanks for the update.

 

Hope the lease extension process goes to plan.