Doubling ground rent every 26 years..

Charlotte1404

I am in the home stretch of selling my 2 bed flat, finally.

One of the enquiries my buyer's solicitor sent to mine, according to the buyer, was that he said the mortgage provider would not lend on the property due to the doubling ground rent.

The lease has 104 years left (Started in 2001 for 125 years). The ground rent is currently £75 per year. 
It has that darned doubling clause, due every 26 years. The first doubling (to £150) due in 2027.
The buyer himself (buying to occupy) isn't concerned about this charge.

But now we are both concerned he won't be able to get a mortgage, as per his solicitors...

I purchased the property October 2019, and had no issues with getting a mortgage. I am aware the crackdown on new lease properties came in this year, but will this have such an effect on mortgages now? 

And on a personal note, I didn't think an increase every 26 years on a fairly low starting ground rent should be of too much concern.... should it?

user1977

Do you know which lender it is? It doesn't sound like the sort of thing which is a general problem, given the frequency and the current level, so not "unmortgageable", but possible his lender of preference does have a difficulty with it.

ashe

I'd imagine inflation over 26 years would be more than the doubling?

nicmyles

It's normally "doubling every 10 years" clauses that lenders have a problem with, so I'd suggest he try another lender.

NameUnavailable

If his lender won't lend ask him to speak to a mortgage broker who will find one that will - 26 years is usually acceptable as long as the ground rent isn't going to increase above £250 (outside London) within the mortgage term.