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Hi Everyone
I have 3 buy-to-let, interest only, mortgages with NRAM which I took out between 2004-2006 with Northern Rock as was.
NRAM have been encouraging customers to leave and take mortgages with other lenders for some time now. As two of my properties have very short leases 42 and 40.5 years I thought now would be an ideal time to sell one of my properties and use the profit to extend the leases on the other two and ultimately sell those or re-mortgage. These properties are in S. London and the cost of each lease extensions will be approx. £60k each. I was hoping for the profit of my sale to be £120k roughly to cover this.
I have an offer on the property in question, so great news so far.
But I had the shock of my life today when I received via my solicitor the redemption letter from NRAM.
The balance on the property is £162,000 (which I am aware of) but they are requiring this payment plus £21,595!!!
In the redemption letter NRAM state:
"...if the customer wants to pay off one other accounts with us, we have the right to retain our mortgage in respect of that property as security for the total debt owed by the customer....
"As an alternative to help reduce the customers portfolio debt with us, we are willing to consider not Apply our All Monies Charge in full on this occasion provided that they pay the £162,000 and repay an additional £21,595.74"
None of my mortgages with NRAM are in arrears , in fact I overpay by approx. £30 to £100 each month.
A year and a half ago I tried to sell the same property, but the sale fell through, but that time NRAM did not have any extra charges and just wanted the normal redemption value on completion.
There is no indication of how this figure has been worked out nor what they will do with the funds. Will they split it and pay off some of both mortgages, keep it in some sort of holding account? As this is technically a big overpayment could I stop paying off each mortgage for a year?
The letter has come from their Commercial Buy-to-Let department. When I first used Northern Rock I thought Commercial mortgages were for those with 5 properties or more. I do not have a 'commercial' mortgage.
I have written to NRAM today to ask them to clarify this charge.
Is this legal?
Best regards
Chris
I have 3 buy-to-let, interest only, mortgages with NRAM which I took out between 2004-2006 with Northern Rock as was.
NRAM have been encouraging customers to leave and take mortgages with other lenders for some time now. As two of my properties have very short leases 42 and 40.5 years I thought now would be an ideal time to sell one of my properties and use the profit to extend the leases on the other two and ultimately sell those or re-mortgage. These properties are in S. London and the cost of each lease extensions will be approx. £60k each. I was hoping for the profit of my sale to be £120k roughly to cover this.
I have an offer on the property in question, so great news so far.
But I had the shock of my life today when I received via my solicitor the redemption letter from NRAM.
The balance on the property is £162,000 (which I am aware of) but they are requiring this payment plus £21,595!!!
In the redemption letter NRAM state:
"...if the customer wants to pay off one other accounts with us, we have the right to retain our mortgage in respect of that property as security for the total debt owed by the customer....
"As an alternative to help reduce the customers portfolio debt with us, we are willing to consider not Apply our All Monies Charge in full on this occasion provided that they pay the £162,000 and repay an additional £21,595.74"
None of my mortgages with NRAM are in arrears , in fact I overpay by approx. £30 to £100 each month.
A year and a half ago I tried to sell the same property, but the sale fell through, but that time NRAM did not have any extra charges and just wanted the normal redemption value on completion.
There is no indication of how this figure has been worked out nor what they will do with the funds. Will they split it and pay off some of both mortgages, keep it in some sort of holding account? As this is technically a big overpayment could I stop paying off each mortgage for a year?
The letter has come from their Commercial Buy-to-Let department. When I first used Northern Rock I thought Commercial mortgages were for those with 5 properties or more. I do not have a 'commercial' mortgage.
I have written to NRAM today to ask them to clarify this charge.
Is this legal?
Best regards
Chris
