Ground Rent Cap

What the £250 Ground Rent Cap really means for you

The introduction of a Ground Rent Cap of £250 sounds incredibly positive and reassuring for many people looking to sell flats at the moment. For sellers, the proposal of an easy solution is being promoted as greater protection for sellers and a seemingly tidy fix to an incredibly messy leasehold system. However, the reality of this is much more daunting and poses a far greater risk to sellers.

Changing dynamics to the leasehold systems not only complicates sales and will enhance the risks for mortgage lenders.

The existing market has been held together with an understanding from mortgage providers that there is confidence in lending and valuations were clear and surveyors had clear valuations.

Changes to the legislative system for leasehold flats will now disincentivise current sales going through, and as leasehold properties are an estimated 1/5th of the housing market (ONS, 2023) in the UK this will have a drastic impact.

Leasehold flats face greater scrutiny through solicitors, surveyors and lenders. Some of the biggest questions that are at the forefront of the conversation are: Will resale value be affected? Will lenders change criteria? Is there a greater risk for leaseholds now?

Cash buying companies answer these questions for sellers. Being able to purchase the property from you directly, takes away your risk. There is no worry of chains, buyers concerns or impact of the legislation on your sale.

To find out what we can do for you and the help we can offer, please give us a call on 0 8000 443 911 and find us online at: https://www.nationalhomebuyers.co.uk/