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janieb

Doubling Ground Rents

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Does anyone have experience have this? Is this common with new builds/developments/conversions? I was in the process of buying 2 apartments and had to walk away

as the lender would not lend on the development due to the doubling rent cause in the lease. It was  a red flag for me. I want to look at other apartments but wanted to know if this is usual with new build blocks?? I wasted time and money on this so I want to make sure next time I know before I even put in an offer.

Any advice appreciated.

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Freeholders setting up leaseholds, try to get extra value with high ground rents. Enabling them to later sell the freehold for significant sums. Unfortunately for them mortgage lenders have grown wise to this issue and have stopped (in general) lending on doubling ground rents. A lot of freeholders have not caught up with the reality of the situation.


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