Various changes took place last Friday to the CML Handbook Part 2 requirements.
To access the change firms would need to sign up for the Lender Handbook LENDERmonitor update service as promoted on the CML Website. The main changes relate to what documents you should send the lender on completion and also a slight but important change to calculating the acceptable minimum lease term.
Yorkshire Building Society is one of a number of lenders who have made changes to their instructions in this area concerning short leases. Lenders are making their requirements much stricter in the belief that shorter leases are represent less marketable than they used to be. This puts pressure on the borrowers to extend their lease term if they want to refinance or sell their property. I expect a number of leasehold owners to be asking themselves the question ‘when I bought there was no issue with a short lease and yet now I am having a problem’.
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