Sold our flat and offer accepted on new build. Enquiries all done except the last one - ground rent. I am aware of all of the issues and previously posted about it.
Basic situation - ground rent is £200/year fixed until 2054 when it goes to £400/year fixed. So it’s a 50 year increase which would still be below inflation. Our solicit doesn’t think this is an issue as it is fixed and 50 years.
I know the AST loophole has now gone, but lenders still have issues if the GR is above 0.1% of the property value.
We accepted a lower offer because we were getting £20,000 deposit with the new build. Was only going to sell for £200,000 but accepted £190,000 so we could reserve. Other flats around us going for over £200,000.
Just found out that the buyer’s lender is Nationwide and after some googling see that they are one of the strictest for GR.
With GR at £200 and sale price £190,000, it makes it 0.105%. It is now with Nationwide to access and decide but we’re now deflated and think they will decline and everything will fall through.
Anyone had a similar experience. Any positive stories along the same lines…?