I should probably pull out..

mi-key

Sarah1Mitty2 said:

Equalee said:

GixerKate said:

If you really like the apartment is there any harm in waiting a bit longer?  You could have a look around at the current market and see if anything else interests you but you've waited this long and if the price is as good as you imply then what do you have to lose?

It took 10 months for my last move to take place, I'm glad I waited it out as I really do love my house and it was worth the wait.

It's a catch-22, find something else I like and it's a mortgage rate significantly higher than in August, plus the house price rises in the duration.

As borrowing costs increase lenders tend to down-value properties more, and buyers tend to make much lower offers, wait a bit longer and keep the faith....Good Luck!

Borrowing costs are dropping...

Sarah1Mitty2

 Has the OP made a decision yet?

Equalee

Sarah1Mitty2 said:

 Has the OP made a decision yet?

Lender has said that the ground rent review provisions in the lease are not acceptable.

Conveyaner is going to liaise with the sellers about a deed of variation, which may delay matters significantly but if we don't and I come to sell in the future, I may need to get a deed of variation once again and they cost around £1000.

No update since posting sadly. 

At the time of writing, current mortgage lending requirements (UK Finance/CML) generally do accept ground rents that will increase in future provided the amount of the increase is fixed or can be readily established and is reasonable. The ground rent could double from £125 PA in 9 years time. Seems to be this that is causing the issue..

Sarah1Mitty2

Sounds like too much hassle over the longer term?

silvercar

Sarah1Mitty2 said:

Sounds like too much hassle over the longer term?

Sometimes dealing with the major hassles before exchange means everything can then go smoothly. After all if you liked the place enough to offer on it in the first place, you will still like it when the niggles have been sorted.

Sarah1Mitty2

silvercar said:

Sarah1Mitty2 said:

Sounds like too much hassle over the longer term?

Sometimes dealing with the major hassles before exchange means everything can then go smoothly. After all if you liked the place enough to offer on it in the first place, you will still like it when the niggles have been sorted.

Maybe, but there will be plenty of other properties available without the same level of hassle?

Equalee

Last date to get things through before mortgage offer ends is Friday 24th. I've had confirmation it wont be extended by lender.
So 11 days. Solicitor still reviewing replied sent by sellers. Sellers asked for copy of lenders comments on the rent review clause for the landlord, will then consider whether they will agree to a deed of variation.

That usually takes months rather than weeks so down to the bone..

If it doesn't go through, looking at revision of the asking price based on re-revised mortgage rates and increased deposit..

Sarah1Mitty2

Sounds tight.

Equalee

Well a week to go and no activity by landlord so looks like going way of the dodo, seems to be this:

The Lease contains provisions re ground rent is subject to review

Clauses explain that the amount payable will change every 25 years of the Term, which began in 2007, so the next re-calculation will then be in 2032. Up to the fifth review date the rent shall be the greater of a sum equal to twice the rent payable (so will double) or 1/1000 part of the capital value (value of property?)

At the time of writing, current mortgage lending requirements (UK Finance/CML) generally do accept ground rents that will increase in future provided the amount of the increase is fixed or can be readily established and is reasonable. That being said, there are a handful of Lenders that have issued specific guidelines as to what they deem acceptable. The lending criteria for acceptable ground rent provisions (and other Lease provisions) could change in the future and you may find that what is acceptable now to a lender may not be acceptable in the future.  As market factors change in this area lending criteria will also change.

Furthermore if the rent was to rise to over £250.00 this could become a further problem Ground rents that are (or will be in the future) in excess of £250 per annum (or £1,000 per annum in Greater London), could be a cause for concern. The reason for this is that if you (or future owners) fail to pay your ground rent in accordance with the terms of the lease, the landlord has greater powers to take possession of the property and bring the lease to an end. 

The levels of acceptable ground rent, and whether ground rent should in fact ever be payable, are questions currently being debated by Parliament as there is growing pressure on the Government to change the law to remove this issue. There are a lot of leases which have the potential to have a ground rent in excess of the limits stated above and we are finding that lenders may not lend on such leasehold properties

Equalee

So, sadly, the cost of a mortgage over course of the lifetime went over £9,000 since mortgage offer lapsed on Sunday and seller would only offer 2k drop, I've pulled out.

Still had no confirmation LL would agree to a deed of variation around the ground rent so maybe for the best. Seller tried to blame my solicitor for not asking sooner for Landlord/ Management pack for the apartment so maybe was destined never to be. I dunno... I would have expected someone to ask the seller about that from either their solicitor or estate agent when the offer was accepted 7 months ago. Thanks everyone!