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PR Newswire
04-05-2017, 09:56 PM
The Nationwide building society – which is one of the top three mortgage providers in the UK – announced today that it will not lend on properties with doubling ground rent.
“Unreasonable multipliers such as doubling every five, ten or fifteen years not allowed. Escalation should instead be linked to a verified index, such as the Retail Price Index,” it says.
It adds: “In addition, the maximum acceptable starting ground rent on all new build leasehold properties will be limited to 0.1 per cent of the property’s value.”
For some unknown reason it also insists that the “minimum acceptable lease term on new build transactions (including office conversions) will be 125 years for flats and 250 years for houses.”
“Unreasonable multipliers such as doubling every five, ten or fifteen years not allowed. Escalation should instead be linked to a verified index, such as the Retail Price Index,” it says.
It adds: “In addition, the maximum acceptable starting ground rent on all new build leasehold properties will be limited to 0.1 per cent of the property’s value.”
For some unknown reason it also insists that the “minimum acceptable lease term on new build transactions (including office conversions) will be 125 years for flats and 250 years for houses.”