RPI Ground rent review every 7 years - which Mortgage lenders lend?

SmashedAvacado

Or don't listen to rachel and instead

google RPI CML ground rent and you will find as the top link the CML handbook entry which is the list of every lender's requirements, and not one of them other than barclays has any sort of problem with frequent RPI reviews, and as i have mentioned, barclays doesnt want them more frequently than every 5 years so would be happy with yours.

The cml handbook is the place that lawyers go to see if the lender has a particular approach to legal issues for property transactions. They are pretty consistent but each lender has their own approach to some matters - and the idea of publishing them is to save time in solicitors contacting the lenders. BUt i am just a random person so perhaps i am wrong...and the link is wrong...

AdrianC

So, Rachel, if inflation is "onerous", what is - iyho - an acceptable ground rent rise?

rachel230

A regular increase in g/r whether rpi or doubling. Added to that connected to the value of the property (0.1 max at *any * time so linked how many times over the lease lifetime the increases will happen. As of course you know when advising.

rachel230

SmashedAvacado wrote: »

Or don't listen to rachel and instead

google RPI CML ground rent and you will find as the top link the CML handbook entry which is the list of every lender's requirements, and not one of them other than barclays has any sort of problem with frequent RPI reviews, and as i have mentioned, barclays doesnt want them more frequently than every 5 years so would be happy with yours.

The cml handbook is the place that lawyers go to see if the lender has a particular approach to legal issues for property transactions. They are pretty consistent but each lender has their own approach to some matters - and the idea of publishing them is to save time in solicitors contacting the lenders. BUt i am just a random person so perhaps i am wrong...and the link is wrong...

And of course you will also be aware no doubt that mortgage companies are extending their tightening up criteria over this issue. Oh - and that many people are trapped because would be buyers cannot get mortgages. On ONEROUS leases. Whether you decide you agree or not is besides the point. It is fact.
And the OP should understand exactly the implications are of not just the g/r terms but whatever else may be in the lease.

anselld

RPI increase is NOT onerous unless you happen to have joined the anti-leasehold bandwaggon in which case all leases are onerous and you might as well stop looking to buy a flat.

SmashedAvacado

rachel230 wrote: »

And of course you will also be aware no doubt that mortgage companies are extending their tightening up criteria over this issue. Oh - and that many people are trapped because would be buyers cannot get mortgages. On ONEROUS leases. Whether you decide you agree or not is besides the point. It is fact.
And the OP should understand exactly the implications are of not just the g/r terms but whatever else may be in the lease.

Rachel you can keep digging or you can accept you have this wrong. Inflation by definition is not a concern, as everything is expected to go up in price with inflation. They don't revoke your mortgage offer because the price of bacon has gone up - and the point with these leases is that the ground rent remains affordable.

I have shown you where to look for the exact requirements of each lender, and identified that this is not an issue with facts. You are just arguing that black is white for some strange reason. If i were orange then you would be fakenews.

rachel230

SmashedAvacado wrote: »

Rachel you can keep digging or you can accept you have this wrong. Inflation by definition is not a concern, as everything is expected to go up in price with inflation. They don't revoke your mortgage offer because the price of bacon has gone up - and the point with these leases is that the ground rent remains affordable.

I have shown you where to look for the exact requirements of each lender, and identified that this is not an issue with facts. You are just arguing that black is white for some strange reason. If i were orange then you would be fakenews.

Check post 14.
And check what ground rent is actually meant to be.for.
7 yearly rpi increase is onerous.
Fact.

AdrianC

AdrianC wrote: »

So, Rachel, if inflation is "onerous", what is - iyho - an acceptable ground rent rise?

rachel230 wrote: »

A regular increase in g/r whether rpi or doubling.

Was that in reply to my question?

So you really believe that ANY regular increase - even by inflation, so the amount stays the same in real terms - is "onerous"?

Added to that connected to the value of the property (0.1 max at *any * time so linked how many times over the lease lifetime the increases will happen. As of course you know when advising.

I have zero clue as to what you mean by this.

SmashedAvacado

I think you mean frequent rather than regular
and as i have already shown you - the only lender that has an issue with a frequency of 5 years is barclays. Not sure why they do as it makes no difference. All of the others don't have an issue with RPI period. They have an issue with anything above and beyond RPI.

In fairness to the people that will read this thread, you might like to provide some facts to back up what you are saying - i have referred to a source that is available for anyone to look at or check.

davidmcn

rachel230 wrote: »

Fact.

Case closed, m'lud