Ground Rent issue

deborahxc123

beevee77 said:

We are having this issue from the other side. Our buyer's solicitor have created a major fuss because they ground rent doubles every 25 years (from current rate of £150) and went to the lender to see if a Deed of Variation is needed. It isn't at all. The lender would be satisfied with an indemnity and we don't know why the solicitor is causing such a fuss. If your lender does have an issue with these lease terms then an indemnity policy should quickly resolve it. 

If you are worried this would cause an issue down the line with re-sale you could always look into a Deed of Variation at a later date once you are moved to see if the terms can be made more favourable. 

By the way, do you know who is the lender of your buyer?

beevee77

deborahxc123 said:

beevee77 said:

We are having this issue from the other side. Our buyer's solicitor have created a major fuss because they ground rent doubles every 25 years (from current rate of £150) and went to the lender to see if a Deed of Variation is needed. It isn't at all. The lender would be satisfied with an indemnity and we don't know why the solicitor is causing such a fuss. If your lender does have an issue with these lease terms then an indemnity policy should quickly resolve it. 

If you are worried this would cause an issue down the line with re-sale you could always look into a Deed of Variation at a later date once you are moved to see if the terms can be made more favourable. 

By the way, do you know who is the lender of your buyer?

Hi! Yes, as far as we know it is Platform, part of the Co-op. Our solicitor also assured us that most of the "stricter" lenders would accept an indemnity in these circumstances so hopefully you won't have any trouble - good luck! 

deborahxc123

beevee77 said:

deborahxc123 said:

beevee77 said:

We are having this issue from the other side. Our buyer's solicitor have created a major fuss because they ground rent doubles every 25 years (from current rate of £150) and went to the lender to see if a Deed of Variation is needed. It isn't at all. The lender would be satisfied with an indemnity and we don't know why the solicitor is causing such a fuss. If your lender does have an issue with these lease terms then an indemnity policy should quickly resolve it. 

If you are worried this would cause an issue down the line with re-sale you could always look into a Deed of Variation at a later date once you are moved to see if the terms can be made more favourable. 

By the way, do you know who is the lender of your buyer?

Hi! Yes, as far as we know it is Platform, part of the Co-op. Our solicitor also assured us that most of the "stricter" lenders would accept an indemnity in these circumstances so hopefully you won't have any trouble - good luck! 

oh, mine is Halifax, hope they can be sensible on that!

deborahxc123

Hi guys, just want to give an update. My solicitor got lender's reply and they have no issues with the ground rent completely. Thank you all for all the advise and help!