High-ground rent for a leasehold property can be seen, and with increasing ground rents, many landlords may be struggling to find mortgage solutions for their residential leasehold properties.
Typically the majority of mainstream lenders will accept ground rents up to 0.1% of the property value, with some specialist banks being able to extend to 0.2% of the property’s value.
Due to this criteria, landlords may have had mortgages previously declined due to high ground rent.
With rapidly increasing ground rent, the government has introduced the Leasehold Reform (Ground Rent) Act 2022, which puts an end to ground rents for most new residential leasehold properties in England and Wales.
But what about your existing leasehold property which has a ground rent above 0.2% of its value?
We May Have a Potential Solution for Your High Ground Rent Mortgage Issues
We have access to a lender, who by referral, can accept properties with ground rents up to 1% of the property value. In all other circumstances, properties such as this would be turned away by mainstream lenders due to “excessive” ground rent.
Therefore, if you have found the perfect investment property but the ground rent is too high for mainstream lenders, then we may have a solution.
Alongside this unique piece of criteria, this lender is also able to offer some extra benefits such as:
• Automatic valuations for eligible properties, which could provide significant upfront savings
• Existing customer discounts
• Discounts for properties with EPC ratings A-C
How Can Advocate Finance Help?
Advocate Finance are experts in arranging funding solutions for all types of investment properties. If you have a leasehold property that you are struggling to obtain a BTL mortgage on due to its high ground rent, then we may have a solution for you.
Get in Touch with Us Today
We provide a FREE assessment on all our services. Please contact us directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.