Developers often impose estate rent charges on modern developments, as a means to ensure that the individual property owners contribute towards future maintenance of unadopted, communal areas, such as landscaped and grassed areas. While these are not usually for large sums, they can still cause problems and complications when the property comes to be sold or mortgaged, leaving lenders concerned about future action due to outstanding rent affecting their security.
Following the Roberts v Lawton ruling, lenders have been concerned that the owner of an estate rent charge could register a lease, and even attempt to claim possession of a property, to help secure any arrears. If the rent remains due and unpaid for 40 days, this action can be taken whether a demand is issued or not.
And recent media coverage suggests lenders are becoming increasingly apprehensive, slowing transactions or even halting them altogether for properties that are subject to an estate rent charge. Our lender-only policy provides a simple solution, even where the rent owner has already become inactive, and the charge is no longer being demanded for an existing, occupied property.
Premiums start at just £42 of a limit of indemnity of £100,000. If you want to find out more about the options available contact our underwriters on 01603 761515 or email enquiries@isisconveyancing.co.uk.