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Lender asking for property details planning to buy from funds raised from re-mortgage previous property


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Hello Hubbers,

Hope you are well and safe

I am after advice on one of the terms on the Mortgage offer from the lender

At the start of the remortgage the lender asked what i will be doing with the funds raised (Property A was purchased using personal savings)

My answer was to purchase another property B, so the lender asked for details of this property B planning to purchase which i gave

Now In the Mortgage offer issued, the lender has instructed the Solicitor to "Ensure that the capital raised from this remortgage will be used to purchase this property B mentioned".

Question to Hubbers is has any body come across a lender who asks for & wants to ensure that the capital raised is used to do what was stated at the start.

Any advice is apprecaited.

Best Regards

Mann2000

 

 

 

 

 

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I have never had that before, it sounds quite strict, what if said second property purchase fell through. Also not sure how the solicitor would feel about that having to hold you to account either. It might be worth having a chat with your solicitor to see whether you can actually be tied to this instruction and what recourse if any the lender might have.

I have twice in the past stated that I would use raised funds to buy property and have always followed through but I have never had to be quite as specific as this with giving details of the property deal.

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk

 

 

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