Problem Property
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HSBC Stops Lending on Leaseholds with Onerous Ground Rents
HSBC has updated its CML Handbook, stating it will not offer residential or Buy to Let Mortgages if properties have excessively escalating ground rents. This change follows a similar update by Nationwide Building Society. Additionally, law firms can use the LENDERmonitor service to stay informed on such lender instruction changes.
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Nationwide Building Society Sets Out New Ground Rent,Event Fees and Lease Length Policy
nationwide BS updated its Lender Handbook Part 2 regarding new build properties, specifying that new flats must have leases over 125 years and houses over 250 years. Additionally, ground rent cannot exceed 0.1% of property value. Reasonable ground rent escalations are allowed; unreasonable terms require referral. Subscribers can stay updated via the LENDERmonitor Alert Service.