Deed of variation

[Jackofallmasterofnone]

Deed of variation nonsense

Hello, I'm selling my houses which is a leasehold. The buyers mortgage provider has requested a deed of variation, i don't know the specifics but having done some homework i believe it will be so the rent doesn't go above £250/annum and the complications with repossession don't arise.

The estate management company have offered a wonderful deal (robbing b$&#@) offering a ten year fixed sum of £250/annum with the tiny fee of £1800 to process this.

The rent has been reviewed in February 2025 and is set at £170.77/annum. They wrote to me at that time and advised the next review would be 2035.

The review prior to that was 2003.

So, my question is, do i actually have to pay this nonsense or will that letter and confirmation from them that there are no reviews in that time suffice?

The letter won’t suffice as it’s not legally binding. Some lenders will accept indemnity insurance. Do you know which one it is?

I don't I'm afraid. I've asked the estate management company to confirm there is no situation where an increase would occur before 2035, hopefully that will help. Otherwise indemnity policy would be the way to go. This just seems like a money grab from the estate management company really.

Management companies aren’t regulated, so they can charge what they want for a deed of variation.

You need to discuss your options with your solicitor, but if I was acting for your buyer I would definitely not accept just the letter.

Damn. It's crazy how much they can ask for something that's basically unnecessary