Landlord wants £1248 to add a Mortgage Protection Clause

JM68

A lender can set any terms they like (within the law).  A borrower can choose to accept those terms or not borrow from that particular lender.

If your flat is outside of London and the ground rent is set at £250 per year, with NO possible review or increase for the remainder of the lease, then you could consider another lender.  However, if there is ANY increase or review that means the ground rent could exceed £250 at some point during the remainder of the lease then they are acting like most lenders are currently doing and you may need to pay the freeholder for the deed of consent to ever be able to remortgage or sell. 

The 'ground rent over £250 (or a £1000 in London)' issue is a fairly recent development hence it may not have affected you 5 years ago.  Google it for more information.

The price quoted for the deed does not seem particularly excessive to me, as it will be solicitors costs, which are always high.

The freeholder could in theory charge you any price they want for it.  Your only option, if you do need a deed to remortgage or sell, would be to take them to a Tribunal on the basis of 'unreasonable costs' which could take a very long time.  In the meantime you would not be able to remortgage or sell, because you can't agree to pay the fee then challenge it later at the Tribunal.

eddddy

JM68 said:

Your only option, if you do need a deed to remortgage or sell, would be to take them to a Tribunal on the basis of 'unreasonable costs' which could take a very long time.

You can only challenge Administration Charges or Service Charges at a tribunal.  I don't think a fee for a lease variation falls into either of those categories - so it can't be challenged at tribunal.