Upset
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Flat purchase fallen through.😣😟

My son and his partner have been in the process of buying a flat since September.
It was a nice place overlooking the sea. They were given a mortgage in principle very quickly, but the lenders decided they were not prepared to lend on the property because its near 'gambling establishments....actually penny arcades! But, they found another lender and went ahead with surveys etc and clarifying the ins and outs of buying a leasehold property. It was a slow process, but it was seemingly going along as it should be. Christmas week, the lender sent a new set of questions to the seller reguarding the leaseholders. Now, another 4 weeks on the lenders have decided they are not prepared to lend on the property because they are not happy with the fanincial situation of the leaseholders and how they are financing the upkeep of the building.
My son and GF are gutted. This has taken 6months. The seller is clearly scuppered.
The solicitors will still need paying and my lad has paid out hundreds for surveys. Surely, these issues should have been picked up on months ago???
Back to the drawing board for them now.....but right now they are so upset they don't feel like trying agsin yet. 😔
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My daughter and her girlfriend have just gone through something similar.

They found a decent flat that they could 'just' afford.... but after a whole bunch of back and forths and building inspections - it was declined by the lender.

It took months and their hope was shattered as everywhere else is a dump.

Meanwhile, house prices are skyrocketing.
They can't increase their savings fast enough, to match the increases in inflated prices.


Its so unfair to this generation coming through.☹
DeWayfarer · 61-69, M
Lending on leases is never a good idea. Only on buying. Surprised that it was even considered.
Muthafukajones · 46-50, M
@RubySoo You mean that freehold ownership isn’t common?
RubySoo · 56-60, F
@Muthafukajones no. But they wanted a flat overlooking the sea and most if those are in buildings are owned by leaseholders. So its very likely in the present financial climate only cash buyers will be able to purchase leasehold properties as the banks are less likely to borrow against leaseholds.
DeWayfarer · 61-69, M
@RubySoo My nephew lives and leases in Redondo Beach. Some of the most exclusive beach areas in LA. At that time I last saw him he paying 4,000 a month for a Studio apartment. No bedroom . This was in 2000. I have no idea what it's like now.

Only his job as a minor producer allowed him to even lease that studio apartment. No one here lends in such situations.

It sounds like your country is becoming like the USA.

At least I have a separate bedroom and kitchen area, with dining room table in the kitchen area.

Studio Apartments are really very small.
Is there a Chinatown where you live? Find a flat on the 4th floor that has been for sale for ages. I bet you can pick it up dirt cheap. Chinese think the number 4 means death and won't touch it.

 
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