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New policy for Estate Rent charges

In response to increasing demand, we’re pleased to tell you that we’ve introduced a new Estate Rent charges policy for lenders only.

Estate rent charges are imposed by developers on modern, large developments, so that all individual property owners contribute towards future maintenance of unadopted, communal areas e.g. landscaped and grassed areas. Following the Roberts v Lawton ruling, lenders have become increasingly concerned that the owner of an estate rent charge can register a lease and even attempt to claim possession of a property to help secure any arrears.

The rent simply has to remain due and unpaid for 40 days before this action can be taken, whether a demand is issued or not. Lenders are naturally concerned they would be left to incur significant costs and a potential loss under the mortgage as a result of this action, if their borrower defaults on the mortgage.

Premiums start at just £42 of a limit of indemnity of £100,000. For a quote, simply select the ‘Outstanding Charge(s)’ risk type, followed by the ‘Estate rent charge (modern) – lender only’ policy option.