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ground rent review mechanism

2 replies

MrsYip · 05/12/2021 12:32

Hi, we are the in process of buying a leasehold flat. Our solicitor told us that the ground rent review mechanism is based on a % of the market value of the flat, which is not an industry standard method of review (which is usually linked to the pricing index). He said he is not sure if such review mechanism will be acceptable to the lenders and advise us to seek help from mortgage specialists.
May I know get some advice on this? We do not use mortgage so have no contact with mortgage specialists or lenders.
Thank you!

OP posts:
areyouhavingagiraffe · 06/12/2021 12:36

Who is your lender? You can see their requirements in the CMA Handbook (google it). Your Solicitor should be well aware of this

MinnieMountain · 06/12/2021 13:26

If you’re not getting a mortgage, it’s up to you.

Your solicitor should be pointing out that some lenders accept this, some don’t and those that do currently might change their minds.

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