Doubling ground rent on leasehold flat

SXX

Hello - just wondered if anyone has has problems in selling a flat with a doubling ground rent in London?

I am thinking of selling my flat - details:
London flat
125 year lease, with 112 years remaining
Ground rent for the first 25 years = £200, then doubles every 25 years.
(Service charges typically £350-400 per annum)

km1500

every 25 years is fine. It is every 10 years that is a problem...

bouicca21

It’s set to go above £1000 which, although a long way off, may be a problem for lenders.

user1977

bouicca21 said:

It’s set to go above £1000 which, although a long way off, may be a problem for lenders.

...assuming that leasehold reform in the next 62 years before that happens doesn't even include increasing the relevant amount to make it an Assured Tenancy....

SXX

Thanks for your comments.

JustinTime19

Hi.

My flat's lease is very similar - you may find buyers solicitors/conveyancer will push to address the ground rent and the doubling clause. I had this when I was in the process of selling. I referred the buyers to the lenders handbook which shows that a lot of lenders will accept doubling ground rent every 25 years. 

I did have an issue with my lease not being mortgage compliant and when I do come to sell again and complete this time I will probably have to address this through an indemnity policy which should be a nominal charge. Your solicitor/conveyancer should advise if this is an issue for you.

To give you a heads up when selling you may need to reach out to the freeholder and management company to provide documentation which will come with a charge. Your solicitor/conveyancer will let you know what's required for your situation.

All the best for your move !