Mortgage requirements on ground rent
We are currently purchasing a new build property which was bought off plan. The build is almost complete and the developer has offered us a lease extension from 125 years to 250 years. In addition, they have offered to reduce the ground rent from £349 to £245 per annum. They are arguing that many mortgage lenders on buy to let will not lend on properties where the ground rent is greater than 0.1%. They are looking to charge us £1995 for the reduction in ground rent and lease extension. Is it worth paying. We do not want to find in future that we want to sell and people have difficulties getting a mortgage or reduce the buy to let mortgages that we can get. What would be your advice. Is it worth paying the extra money?
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