Leasehold, Property, Money Business | The Guardian
Our buyer’s lender has pulled out because the charge rises with the property’s rising value. Now the delay risks collapsing the whole chainWe found a buyer for our leasehold flat, but on the day of exchange their lender declined to offer a mortgage, despite having previously agreed in principle. The reason was a provision in the lease for the ground rent, currently £200 per annum, to be amended every 25 years according to the market value of the property. We had no trouble securing a mortgage when we purchased the property, and it has not prevented sales of other flats in the building. We have subsequently spent thousands in legal fees trying to secure a deed of variation on the leasehold agreement to amend the ground rent clause but this has been endlessly held up by the freeholder. We now stand to lose our onward purchase.RC, London Continue reading…
Our buyer’s lender has pulled out because the charge rises with the property’s rising value. Now the delay risks collapsing the whole chain
We found a buyer for our leasehold flat, but on the day of exchange their lender declined to offer a mortgage, despite having previously agreed in principle. The reason was a provision in the lease for the ground rent, currently £200 per annum, to be amended every 25 years according to the market value of the property. We had no trouble securing a mortgage when we purchased the property, and it has not prevented sales of other flats in the building. We have subsequently spent thousands in legal fees trying to secure a deed of variation on the leasehold agreement to amend the ground rent clause but this has been endlessly held up by the freeholder. We now stand to lose our onward purchase.
RC, London
