Offers on a new build and ground rents

intrepidtom

My partner and I have found a new build that we really like. It was originally listed at £529k and was reduced to £499k in November. It is one of 2 left of 14 apartments (the other is more expensive). We are first time buyers using Help to Buy, and we have an AIP.

We were originally looking up to £475k, and in fact we thought we were viewing a flat that is £469k but in the end that particular one had sold. Would it be reasonable to make an offer of 10% less than the asking price at about £455k? Or should we stick to our max given the situation? We have read mixed opinions on starting offers.

Secondly, the ground rent we are told is a little high at £500 per year, so potentially over 0.1%. We are aware that we need to check for 'doubling' clauses, however there is an indication that some lenders, namely Nationwide, will not loan on a property with a ground rent above 0.1%, potentially making it difficult to sell if there were a crash etc.

Any thoughts on the above please?

Thanks

Tom99

I expect the £500pa ground rent almost certainly has a review clause so its value to the freeholder (and cost for you to buy out later if you want) will be £10,000+.
Since it is a new build and the lease has not yet been granted there is no reason why you cannot offer based on a £250pa ground rent.
Since this is one of the last to sell the developer may be more agreeable to lower the ground rent.