Tag: Ground Rent
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Ground Rent Mortgage Requirements: The Lease Has Not Changed, but the Market Has
A ground rent clause may remain unchanged while mortgage lender requirements move around it. Discover why the relevant lender, transaction date and wider mortgage market all matter when investigating an earlier purchase.
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Leasehold Regret: Why So Many Buyers Discover the Real Cost Too Late
A major Propertymark report records striking levels of leasehold regret. The lesson for conveyancers is not simply to report the lease, but to explain the financial, lending and resale consequences before the buyer commits.
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Ground Rent Problem Discovered When Selling: What Were You Told When You Bought?
Ground rent clauses can significantly impact property sales and remortgaging. While many owners may overlook these clauses due to consistent payments, issues arise when properties change hands. Changes in lender requirements and the 2022 Leasehold Reform Act complicate matters. Proper advice and documentation review at purchase are crucial to avoid future complications.
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Demystifying Mortgage Rules: Why “Onerous Ground Rent” and the “Renters’ Rights Act” Both Matter
When it comes to leasehold conveyancing in the UK, your conveyancing solicitor will inevitably encounter Part 2 (P2) of the UK Finance Mortgage Lenders’ Handbook. Tucked away in these instructions is a single, heavily loaded sentence: “Ground Rent must not be onerous and must adhere to the Renters’ Rights Act.” At first glance, this feels…
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Lender Updates Leasehold Policy
MPowered Mortgages updated their P2 policy for leasehold properties, setting strict guidelines for ground rents, maintenance charges, and property valuations. Legal firms handling CQS should be aware of these changes.
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CQS Purchase of a Leasehold Policy
The Law Society’s Conveyancing Quality Scheme (CQS) establishes key management standards for leasehold property transactions, focusing on financial implications, ground rents, marketability, extended mortgage terms, management information, referrals, and building safety procedures. Comprehensive reporting ensures clients are well-informed about lease liabilities and obligations prior to exchange.
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Inadequate Leasehold Reports on Title: What the SRA Found
The Solicitors Regulation Authority’s review revealed that 23% of conveyancing firms inadequately advise leasehold homebuyers, often assuming clients understand the differences between freehold and leasehold. This has led to referrals of six firms for disciplinary action. Campaigners stress the need for accountability and compensation for affected leaseholders.
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Top Ten Important Changes to Reports on Title 2017
In the last twelve months the conveyancing fraternity witnessed significant changes to Part 2 of the UK Finance Mortgage Lenders’ Handbook. This, combined with the press and government focusing a spotlight on leasehold, resulted in firms considering how they should upgraded their Report on Title . In response to lender changes and in anticipation…
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HSBC Stops Lending on Leaseholds with Onerous Ground Rents
HSBC have become the latest lender to change their CML Handbook instructions to lawyers in relation to ground rents. Policy 5.14.9 of HSBCs CML Handbook Part 2 now reads We will not provide residential or Buy to Let Mortgages in the following circumstances: • The property is subject to an onerous Lease clause regarding an…
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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.