Doubling ground rent issue

NameUnavailable

I viewed a property I really liked. I've seen an identical property in the same road previously which had a shared freehold so I assumed they would all be, but it turns out this one (and a few others) are not shared freehold - these 50's built maisonettes.

The lease was extended about 10 years ago and has a doubling ground rent clause. I know the issue with AST's and some mortgage lenders and don't want to get into problems later on.

The GR in the (extended) lease is under £150 but it says it doubles every 20 years from the 'term' - the date mentioned for the start of the term is 1987.

The agent's particulars state the GR is £150 currently but it appears to me that it is actually £300 now as it should have doubled in 2007? If it is already over £250 then I expect there will be issues getting a mortgage (although I hear that most lenders will have issues with doubling ground rents regardless).

Any pointers/thoughts appreciated.

princeofpounds

NameUnavailable said:

The agent's particulars state the GR is £150 currently but it appears to me that it is actually £300 now as it should have doubled in 2007? If it is already over £250 then I expect there will be issues getting a mortgage (although I hear that most lenders will have issues with doubling ground rents regardless).

Sounds like it, based on what you say. And assuming it isn't in London where the limit is different.

The vendor can request a deed of variation from the freeholder; they may have to pay for it but a different ground rent arrangement can potentially be put in place.

The vendor can apply for a statutory lease extension, which will eliminate the ground rent.

So the issue can be potentially resolved, but will need to be addressed.

NameUnavailable

princeofpounds said:

So the issue can be potentially resolved, but will need to be addressed.

Indeed - but it depends on whether or not they're willing to do anything. The place has only just come on the market. The agent brushed my concerns off initially (oh, the law is changing so ground rent won't apply - I know that's not the case).