Ground rent doubles every 10 years – is my property mortgageable?Make Text Bigger
I have exchanged contracts on my sale but am worried that my buyer will not be able to secure the mortgage that she needs.
The ground rent is currently £350 a year. It doubles in 2016 and every 10 years after that.
Ground rent would be £2,800 after a typical 25 year term, which seems affordable with inflation. However, at the end of the 125 year lease in 2131, when none of us are around, it would be £1,433,600
I know that collective enfranchisement, deed of variation to the lease to freeze the ground rent, and lease extension are all possible alternative options, but my preference is to sell.
Can anyone shed any light on this?
If it is mortgageable, which lenders are likely to be most amenable?
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