Lifetime Mortgages

jameshampshire

I understand that providers are declining funds on Leasehold properties that have doubling up ground rent reviews. Is there an alternative such as indemnity insurance that will satisfy lenders. Does anyone have experience of Lifetime mortgage/equity release being declined because of escalating ground rents. Or is there any information out there that Government legislation is being agreed on ground rent for new properties but I understand that it will not be retrospective on older leasehold properties.

anselld

There is not a blanket ban on ground rent doubling, it depends on how quickly it doubles and the individual lender preferences.  25 year doubling for example is arguably less than inflation.  Best to consult a mortgage adviser with access to the whole market.

The banning of ground rents is not retrospective, however there is proposed new legislatin to make statutory lease extensions easier and cheaper.  Details ncluding timescale are unclear.  A statutory lease extension drops the ground rent to zero.

jameshampshire

does anyone know of a lender for lifetime mortgage or equity release who will accept non capped Ground Rent at present £200 doubling every 25 years which i considered normal but no longer the case for most lenders.