Text for CQS CPMS Policy
CQS Policy: Underleases - Disclosure and warning to Lender and Borrower
Purchase this policy: Purchase of a Leasehold policy
- Change date
- 17/11/2025
- Word count
- 142
- Deployment measure
- 7/10
Rationale
Sets out draft policy wording where the property is held under an underlease. This must be disclosed to the lender because such arrangements can affect value and mortgageability; some lenders won’t accept them, so fee earners must report the details, warn the buyer, and obtain the lender’s written approval before proceeding.
This section sets out the firm’s policy on identifying and disclosing cases where the security offered to a lender is an underlease. This aligns with the general duty to report
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