Hello,
We have received a loan offer from PTSB for a property. The property is on a lease hold of slightly less than 70 years left. The seller is not in a position to buy the lease hold as in my understanding, their type of ownership does not qualify them to purchase it. (My lay understanding is that because the seller is a bank and this distressed sale, hence they cannot resolve that prior to us buying it.) Our solicitor has advised us that PTSB (our mortgage lender) is asking for a 'statutory right to purchase the free-hold title'. Our solicitor has also advised us that he cannot provide this as in order to do that, we need to already have purchased the property in order to apply for buying out the lease hold. To me, it sounds very much like a catch-22 situation. We have been asked by our solicitor that he can provide it, however, he would ask that we sign an indemnification that absolves him from us filing suit if after the sale, we are not successfully able to buy the lease hold. Despite his confidence that it should be successful, he cannot guarantee it.
- Does anyone have any experience with these kinds of application where the bank will reject even if there is a reassurance of statutory right to purchase?
- Is this a usual occurrence where the solicitor asks for an indemnification?
Thanks!
M
We have received a loan offer from PTSB for a property. The property is on a lease hold of slightly less than 70 years left. The seller is not in a position to buy the lease hold as in my understanding, their type of ownership does not qualify them to purchase it. (My lay understanding is that because the seller is a bank and this distressed sale, hence they cannot resolve that prior to us buying it.) Our solicitor has advised us that PTSB (our mortgage lender) is asking for a 'statutory right to purchase the free-hold title'. Our solicitor has also advised us that he cannot provide this as in order to do that, we need to already have purchased the property in order to apply for buying out the lease hold. To me, it sounds very much like a catch-22 situation. We have been asked by our solicitor that he can provide it, however, he would ask that we sign an indemnification that absolves him from us filing suit if after the sale, we are not successfully able to buy the lease hold. Despite his confidence that it should be successful, he cannot guarantee it.
- Does anyone have any experience with these kinds of application where the bank will reject even if there is a reassurance of statutory right to purchase?
- Is this a usual occurrence where the solicitor asks for an indemnification?
Thanks!
M