If you purchased your property through the Right to Buy scheme you are likely to have received a discount. The council secures this discount as a registered charge against the property for five years.
If, within these first five years, you want your mortgage lender to release equity from your property for improvements or other reasons, in a similar way your mortgage lender will need to secure the release as a registered charge. The mortgage lender, however, will insist on the charge taking precedence over the council's charge.
In order to do this your lender will need to make an application for a Deed of Postponement. If approved, the council will register its charge as a third charge and allow your lender to place a second charge (the first is placed by your lender to secure the original sum of the mortgage).
The council will only approve Deeds of Postponement for improvement works to your property or if you are changing mortgage lenders as defined under the provisions of Section 156 of the Housing Act 1985.
In order for us to review any application you need to provide:
- a cheque made payable to London Borough of Ealing to pay the administration fee
- a current valuation of your property
- confirmation of the amount of the existing mortgage
- confirmation of the purpose of the advance (if it is for home improvements, estimates of the costs will be required)