Solicitor Ground Rent Review Charge

Thrugelmir

nekr0mantik said:

Thrugelmir said:

nekr0mantik said:

eddddy said:

What does the solicitor mean by doing a "ground rent review" - what work is the solicitor going to do?

Based on the info you've given, your "ground rent reviews" for your lease happen every 15 years (but your solicitor isn't involved with that).

According to the lease, is a "ground rent review" due soon?



It's a bit of a wild guess, but could it be be that...

• a "ground rent review" of the lease is due soon - and could potentially happen between exchange and completion?

• and the ground rent could increase to more than £250 (or £1,000 in London) - meaning you'll need indemnity insurance?

• And the indemnity insurance costs £299+vat?

The ground rent review for this property is not due for another 6 years.

Still impacts the potential value of the lenders security which is the property. 

True but the lender would base that on the exact clause and how much it would increase ground rent by. If the lender sees the clause of the increase and is not happy then I would suspect they would not give me the mortgage as they are being extra cautious ever since pandemic. But solicitor telling the lender the clause should not cost £400+ is what my thread is about.

The solicitor you employ also works for the lender. You are liable for the lenders costs in being advised by the solicitor. The solicitor isn't going to perform extra work outside the conveyance work they've quoted for no remuneration

nekr0mantik

Thrugelmir said:

nekr0mantik said:

Thrugelmir said:

nekr0mantik said:

eddddy said:

What does the solicitor mean by doing a "ground rent review" - what work is the solicitor going to do?

Based on the info you've given, your "ground rent reviews" for your lease happen every 15 years (but your solicitor isn't involved with that).

According to the lease, is a "ground rent review" due soon?



It's a bit of a wild guess, but could it be be that...

• a "ground rent review" of the lease is due soon - and could potentially happen between exchange and completion?

• and the ground rent could increase to more than £250 (or £1,000 in London) - meaning you'll need indemnity insurance?

• And the indemnity insurance costs £299+vat?

The ground rent review for this property is not due for another 6 years.

Still impacts the potential value of the lenders security which is the property. 

True but the lender would base that on the exact clause and how much it would increase ground rent by. If the lender sees the clause of the increase and is not happy then I would suspect they would not give me the mortgage as they are being extra cautious ever since pandemic. But solicitor telling the lender the clause should not cost £400+ is what my thread is about.

The solicitor you employ also works for the lender. You are liable for the lenders costs in being advised by the solicitor. . 

Reading the bit I posted it sounds like they got 2 charges. £195 for advise and £195 to deal with lender on ground rent. I dont think I HAVE to pay for the advise but yeah the talking to lender part of the charge I doubt I can get out of. The annoying thing is, ground rent increase in lease is nothing new so being a leasehold property they should have included this fee to deal with lender in the original price.