Santander Indemnity Insurance

louigi12345

Does anyone know if Santander accept indemnity insurance on ground rent? 

Ground rent is £200 but in 2039 increases to £300 (£100 increase every 25 years) 

we have a price for a deed of variation but we don’t have time. 

The price is considered in the sale price and is being completed after sale. 

loubel

Yes they do:

5.14.9 If different from 1.11, contact point for matters connected with the lease:

Ground Rents

1. Where ground rent provisions cause (or, during the term of the mortgage, are likely to cause) the lease to be treated as an Assured Shorthold Tenancy under the Housing Act 1988, this need not be reported to us if either:

a. the Lease can be varied to restrict the ground rent below the statutory level; or

b. a suitable indemnity policy is put in place to protect us (but please notify us about the policy in accordance with the Indemnity Insurance instructions)

eddddy

louigi12345 said:

we have a price for a deed of variation but we don’t have time. 

The price is considered in the sale price and is being completed after sale. 

Out of interest - Is it a house or a flat, and what price is the freeholder quoting? (And what is the lease length?)

Something to bear in mind - it's very unlikely that the freeholder's offer is binding, even if it's in writing. (It's likely to be 'subject to contract'.)  So the freeholder could increase the price or decide not to offer the variation, after you've purchased the property.

louigi12345

Binding contract with solicitor. 

All sorted now.