Escalating Ground Rents
Our standard acceptability
Acceptable
Criteria definition:
Indicates if we can potentially lend on residential applications for leasehold properties that have an escalating ground rent clause.
Policy Notes:
Family Building Society can potentially consider lending on leasehold properties where an escalating ground rent clause exists.
Warning Notes:
The legal representative must review the ground rent provisions in the lease and to report to us if either: (a) the lease contains an escalating ground rent clause resulting in the rent payable at any time during the term being either unfair or unreasonable; or (b) at any time during the term the ground rent will exceed the statutory threshold set out in paragraph 3A of Schedule 1 of the Housing Act 1988.
Criteria categories:- Flats and Apartments
- Property
Last updated:
25 March 2020