Mortgage advice - Apartment Servicing Company gone bust!

chris50cc · Nitrous Nuisance Joined: 23 Jul 2004 Karma :

I've recently been to view and apartment which appears to be fantastic. However, the estate agent informed me that the company who serviced the apartements (exterior matinenance, gardening etc) has gone into liquidation and so the apartments are no longer maintained, other than by the residents.

The estate agent explained that because the apartments didn't have a Servicing company most lenders would be very reluctant to give a mortgage on the property.

Is this is true? How hard will it be to get a mortgage under these circumstances? Is there any way around it?

Any help appreciated!!

Thanks,
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Polo · World Chat Champion Joined: 05 Sep 2007 Karma :

Although there is no maintenance company contracted to work there, I would expect the actual owner to still be liable if say the guttering came away. Remember most flats/apartments are leasehold.

At the end of the day, until you pay that final mortgage payment, the property belongs to the bank. So if they feel they will only lend if the maintenance is in place then thats how it is.

Ring your prospective lender and ask. Should be a straight forward yay or nay answer. Thumbs Up

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Itchy · Super Spammer Joined: 07 Apr 2005 Karma :

Just wait 12 months and its price will have dropped like a rock...

Oh and mortagages aren't hard to get its just that exceptional ie 125% , 100% , zero deposit ones are gone , the normal healthy lender ones are still there ie 3.5x salary and 25% deposit.
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Rockhopper · Trackday Trickster Joined: 18 Jun 2006 Karma :

The apartments will most likely be leasehold. The freehold will be help by the property company (who are normally the company that do all the miantenance which is what you pay your six monthly maintenance charge for). So basically the ownership of the building is in limbo at the moment as the owning company has gone bust hence the bank won't give you a mortgage.
Probably!