Residential policy
Tenure
- Leasehold properties are acceptable
- Share of freehold properties are acceptable but there must be an acceptable underlying lease upon which we can place our charge
Leases
Leases should have at least 85 years remaining at the time of application. If a lease is in the process of being extended it is acceptable for it to be under 85 years at application if it will have 85 years remaining at completion. Leases with under 85 years remaining can be considered by exception but please check with us before applying.
Leases which contain a provision for periodic increase of the ground rent are acceptable if the amount remains reasonable throughout its term. Increases should usually be linked to RPI or similar. If subject to a multiplier, any multipliers which cause a doubling of rent every period of 15 years or less are not permitted.
Ground rent must not exceed £250 per annum at any point during the lease term. In Greater London it's £1,000. We don't accept indemnity policies for this matter, instead leases must be varied so that the ground rent does not rise above the threshold.