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Three more lenders commit to helping 'in limbo' leaseholders

building safety leaseholders

Landlords who are unable to sell apartments because they continue to suffer from post-Grenfell fire building safety issues have been given some additional Xmas cheer following the announcement that three more major lenders have agreed to lend on such properties.

Virgin Money, TSB and Skipton Building Society have signed up to a pledge originally backed by Santander, HSBC, NatWest, Nationwide, Barclays and Lloyds Banking Group.

The three lenders will now consider mortgage applications for properties in buildings that are yet to be remediated, or where leaseholders are protected from remediation costs.

This gives those looking to buy, sell and remortgage more choice, allowing people to get on with their lives, the Department of Levelling Up, Housing and Communities says.

Reforms

Over three quarters of mortgage lending within England is now covered by the pledge, with the three new lenders “recognising the impact of the Government’s reforms and progress in delivering building safety for those who live in high rise properties”.

“This is a further sign of the market’s confidence in the solutions that we have put in place to protect leaseholders,” says housing minister Lee Rowley.

“From today, customers impacted by building safety issues will have more choice when looking to buy or re-mortgage. I would encourage more banks and building societies to join the commitment made by Virgin Money, TSB and Skipton."

Rowley also reveals that major UK conveyancing firm e-Surv is now working with his department to receive and exchange information on affected buildings which will help streamline their valuation processes.

“Along with other lenders and valuation firms this will ensure a smooth experience for customers looking to buy, sell or re-mortgage their property,” adds Rowley.

Pic credit: Shutterstock/donsimon

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