Indemnity Policy vs Deed of Variation

[Mills25]

I am a buying my first property and close to exchanging however we have an issue with ground rent.

The ground rent has a doubling clause of 20 years. It has a few years yet before it doubles to £250 and then 20 years after before it doubles to £500.

I am in a rush to move in so if the seller refuses to proceed with the Deed of Variation and/or we are looking at several months I am thinking about accepting an Indemnity Policy on their expense to then look at purchasing a Deed of Variation for when I come to sell or my mortgage offer will expire.

Am I able to purchase a Deed of Variation at any point once I have moved into the property?

Any advice would be great.

An indemnity policy protecting against what?

Your lenders may no longer lend to you without the deed of variation in place, particularly dependent on your lenght of mortgage.

to state provide assurance to the lender regarding the ground rent at £250.

@ChristmasCakeAndStilton against the ground rent of £250.00 for the lender.

@NewmummyJ I believe they would accept the indemnity policy however I would like to purchase this at a later date for when I sell but unsure if it can be purchased at a later date or has to be when buying/selling property.

I don't understand what the I indemnity policy is for? The lease says the ground rent will double. There is a known party who benefits.

There is no guarantee that the Deed of Variation will be available on the same terms in the future.

You can purchase it anytime- but only if landlord agrees, so you might want to at least fact find this even if you don't have the deed drafted. I would also check with your lender they would accept the indemnity.

@NewmummyJ thank you☺️