Maximum Ground Rent (as % of Property Value/Purchase Price)

Our standard acceptability

0.25

Criteria definition:

Indicates if we have a maximum threshold, and if so what it is, that the ground rent on a leasehold property cannot exceed measured against the property value. For example, Applicant 'A' is purchasing a leasehold flat valued at £100,000 that has a ground rent payable annually of £100. This ground rent equates to 0.1% of the property value. Lender 'A' has no maximum threshold on ground rents and therefor Applicant 'A' is able to proceed with a mortgage application on this property.

Policy Notes:

Family Building Society can potentially consider applications on leasehold properties so long as the ground rent is no more than 0.25% of the property value.

• Flats and Apartments
• Property

Last updated:

25 March 2020