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Recent stories in the news have highlighted the increasing concerns that some lenders have when considering mortgages for properties that are subject to estate rent charges, and the impact this nervousness has on slowing down transactions, or halting them altogether. Our lender-only policy provides a simple solution.

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.

If the rent remains due and unpaid for 40 days, this action can be taken, whether a demand is issued or not.

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.