Mortgage company will not allow completion

Mortgage company will not allow completion

10:26 AM, 8th June 2015, About 7 years ago 6

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I am in the process of buying a HMO. It’s been in the same layout for well in excess of 10 years and is fully up to regs. Mortgage company will not allow completion

I am an experienced landlord and the valuation etc. is all fine.

On the day of completion my mortgage lenders stated they wanted a confirmation email or a lawful development certificate from local council to confirm they were happy with its current layout as a HMO.

The Council said they will not send such an email and the owner must apply for a lawful development certificate which takes 8 weeks. The current owner retired and is unlikely to want to go through the hassle of applying with all needed documentation council want, i.e. all old tenancies.

The house is being purchased at a good price. It seems I will have to buy cash but don’t want to.

The owner will not allow exchange to undertake with 2 months of completion to allow us to apply to another lender or time to get the certificate.

We need to start works ASAP as we’ve got students happy to take it but work must start now to have it ready for the student calendar. So we are stuck it seems unless someone can suggest anything?




Sam Addison View Profile

11:54 AM, 8th June 2015, About 7 years ago

Sounds to me as though you will not get a quick acceptable response from either the lender or the council. In which case I guess you either withdraw from the purchase or you finance it by other means, start the work and then resolve financing (not necessarily with same lender!!)

Ross McColl

14:44 PM, 8th June 2015, About 7 years ago

Slightly unorthodox, but if you try and hold for the 8 weeks between exchange and completion and you suggest that the 10% deposit is released to the vendor upon exchange as a gesture of good faith and to sweeten the deal. The only drawback being that if you then don't get the letter you need within the allotted time frame you will have to finance by other means, which it sounds like you were willing to do anyway. The only risk is that the vendor decides to breach contract and runs away with your deposit, at which time you have a claim for money and damages.

Martin T View Profile

9:56 AM, 13th June 2015, About 7 years ago

or dig a bit at the council to find the one person who will authorise the email and offer them £1,000 to do it today. You will need to provide comprehensive details about your situation to make it seem real to them.


9:18 AM, 24th December 2017, About 5 years ago

Just came across this thread - what did you do?

rav singh

10:15 AM, 24th December 2017, About 5 years ago

Hi. Mortg Co allowed completion but I had to apply for lawful Dev cert and provide within 3 months. I did this and got it and the mortg co did contact me asking for it. Hope that helps. Only got mortg co to agree as broker had relationship with regional manager and I am a exp landlord

Sam Addison View Profile

11:56 AM, 24th December 2017, About 5 years ago

I am pleased it all worked out for you Rav.

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