Purchaser wants Deed of Variation to Lease due to ground rent

KennyH1

We are in the process of selling a flat and our purchaser has requested a Deed of Variation to the lease since the current ground rent is above the threshold that would make the lease subject to the landlords power to terminate the lease for arrears of rent.

Apparently this is sometimes an issue for mortgage providers but our purchaser is a cash buyer and therefore this may only be an issue when she sells in the future. 

We have offered to pay half of the costs towards the initial exploration of the DoV capped at £500 but she has stated we need to pay for the initial consideration and then for the deed of variation (£750/1000+). 

It is also not guaranteed that the DoV will be granted. 

How should we proceed? 

silvercar

If your buyer can't get a mortgage without it, you need to comply.

KennyH1

silvercar said:

If your buyer can't get a mortgage without it, you need to comply.

The purchaser is a cash buyer so the DoV will only benefit her when she sells in the future. 

user1977

KennyH1 said:

We are in the process of selling a flat and our purchaser has requested a Deed of Variation to the lease since the current ground rent is above the threshold that would make the lease subject to the landlords power to terminate the lease for arrears of rent.

You may need to point out to your solicitor that the relevant threshold has been abolished by the Renters' Rights Act.

KennyH1

user1977 said:

KennyH1 said:

We are in the process of selling a flat and our purchaser has requested a Deed of Variation to the lease since the current ground rent is above the threshold that would make the lease subject to the landlords power to terminate the lease for arrears of rent.

You may need to point out to your solicitor that the relevant threshold has been abolished by the Renters' Rights Act.

Thanks - so what does this actually mean?

MyRealNameToo

KennyH1 said:

user1977 said:

KennyH1 said:

We are in the process of selling a flat and our purchaser has requested a Deed of Variation to the lease since the current ground rent is above the threshold that would make the lease subject to the landlords power to terminate the lease for arrears of rent.

You may need to point out to your solicitor that the relevant threshold has been abolished by the Renters' Rights Act.

Thanks - so what does this actually mean?

That a lease of at least 21 years in duration will never be considered an AST no matter how much the ground rent is so therefore if it goes over £250 or £1,000 in London they can no longer use the Housing Act Schedule 2 as evictions reasons. 

eddddy

KennyH1 said:

user1977 said:

KennyH1 said:

We are in the process of selling a flat and our purchaser has requested a Deed of Variation to the lease since the current ground rent is above the threshold that would make the lease subject to the landlords power to terminate the lease for arrears of rent.

You may need to point out to your solicitor that the relevant threshold has been abolished by the Renters' Rights Act.

Thanks - so what does this actually mean?

Here's a couple of solicitors websites that explain it:
https://rawlinsdavyreeves.com/newsroom/the-end-of-ground-rent-ast-traps/
https://www.mosshaselhurst.co.uk/site/home/breaking-free-from-the-ast-trap-welcome-news-for-leaseholders

In simple terms, the landlord will have fewer powers to terminate the lease.

KennyH1

Thanks all.