Thursday, 16 January 2014

Lenders Shying Away From Freehold Flats

The current trend in lenders being more picky with premises they will lend on, avoiding anything remotely controversial, continued yesterday as Yorkshire Building Society (YBS) changed their view on freehold flats.

Up until their recent Part 2 CML Handbook  change, YBS would lend on a freehold flat if the property was in the Scarborough area and the conveyancer in that location acted for the Society. Yesterday’s change now leaves many properties in Scarborough unmortgageable to one of the most popular lenders in the area. To view the change to this lender’s requirements click here. 

Two months ago 10  lenders in England and Wales changed their CML Handbook instructions to lawyers advising that they will now only lend on freehold flats and flying freeholds where the loan to value is less than 90%.

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