Deed of Variation for estate rent charge refused

eddddy

Maffy52 said:

eddddy said:

km1500 said:

And a home owner without a mortgage should be equally worried about this.

Hi eddddy, not sure if it is too late to comment on this discussion. I am currently buying a freehold house with a management company, but no mortgage. I am interested in your comment this also affecting homeowners without a mortgage. Is this because it makes the house less 'sale-able' in the future? 

The problem is that you can lose possession of your house if you don't pay a rent charge  (i.e. you would lose the right to live in your house)

That's a bad situation whether you have a mortgage or not.


(A mortgage lender won't take the risk of losing possession of the house. But if you are a cash buyer, you are free to take that risk, if you want.)

But that only applies if the service charge you pay is classed as an "Estate Rent Charge".