Application → All guides
Expanded higher LTV criteria (95% LTV)
Remortgage & Additional Borrowing
Customer → All guides
Income and employment → All guides
Property → All guides
New Build; Incentives & Part Exchange
Service Charge Service change must not exceed 1% of the value of the property
Ground Rent Maximum annual ground rent must not exceed £250 (£1000 in Greater London) or 0.2% of the current property value (New Builds restricted to 0.1%), whichever is lower Ground rent review period must be equal to or greater than 10 years. Ground rent should double no sooner than 20 years.
If there is the potential or the ground rent currently exceeds the above limits, it should be reduced to within the required threshold. This would require a lease variation to include a new clause in the Lease that states that under no circumstances can rent be increased so that it comes within the applicable Assured Shorthold Tenancy (AST) threshold in the Housing Act 1988 (as amended).
Other Charges such as Rent charges, will be reviewed on a case by case basis and should be entered under ‘Other’.
The valuer will always be asked to confirm whether the annual property charges would affect property suitability and marketability, as part of the mortgage valuation. Where we are advised of an impact, we may choose not to proceed