Leasehold house - Doubling of ground rent every 25yrs

ironlady2022

silvercar said:

The solicitor acts for the lender, so has to make them aware. If they can't get this changed then there is still every chance the lender will accept it.

Thank you for this, useful to know. 

ironlady2022

eddddy said:

ironlady2022 said:

That is really strange from what you are saying as 25 years is not that bad.

It might be a 'half-bluff' by the buyer's solicitor. They would prefer it if the doubling clause was removed - so they're making an issue of it, and making you run around. But if it can't be removed, they might go ahead anyway.

But on the other hand, people are saying that mortgage lenders are getting fussier about ground rents.


Also, some people are threatening to sue their solicitors for not highlighting onerous doubling ground rents when they bought. So your buyer's solicitor might be 'making a bit of a fuss' about this, to make sure the buyer can't claim they didn't know about the doubling ground rent.

Yeh suing the solicitor part will be to do with the previous houses which have been sold under this pretence. 

They have had the lease docs since June, and it is super clear on there. Just making me nervous. 

user1977

silvercar said:

The solicitor acts for the lender, so has to make them aware.

They don't necessarily have to refer it to the lender. Most have guidelines on what they'll accept in the lending handbook:

https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/1852/

ironlady2022

silvercar said:

The solicitor acts for the lender, so has to make them aware.

They don't necessarily have to refer it to the lender. Most have guidelines on what they'll accept in the lending handbook:

https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/1852/

So I've been advised that my Buyer is using HSBC/First Direct and looking at the handbook. A deed of variation IS needed to satisfy them:(

Top of the chain has suggested 25/11 for completion. My mortgage expires 27/11 and the Broker confirmed they will automatically give me 15 day extension to 12/12.

It is really cutting it fine. Not sure what else I can do other than ring the freeholders agent myself? Should i? 

Martisha

Are you selling leasehold house and buying a different leasehold house?

ironlady2022

Martisha said:

Are you selling leasehold house and buying a different leasehold house?

I'm selling leasehold, buying freehold. 

ironlady2022

Update: Agent of freeholder came back in 6 w days. We've passed their direct response to them. Pasted below. 

Will Buyer's Solicitor have to refer back to Lender? As far as I'm Aware, it's the Solicitor who has raised this and not the lender yet at this stage. 

Hoping the finish line is in sight now. 

ironlady2022

Further update: Buyer is ok with query, this is now with their Lender now in a queue to be reviewed.

I believe they are with HSBC/First Direct - does anyone know the response time please? EA mentioned Halifax took 7 working days recently.

trevormax

How much is the current ground rent if you don't mind me asking? I mean, the whole situation is rather pointless if the GR is fairly low and only doubles every 25 years. 

ironlady2022

trevormax said:

How much is the current ground rent if you don't mind me asking? I mean, the whole situation is rather pointless if the GR is fairly low and only doubles every 25 years. 

Current is £150pa.