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The growth of leasehold ownership within the UK property market and increasing ground rents means that lenders are increasingly exposed to the risk posed by conflicting legislation under the Housing Act 1988 and section 146 of the LPA 1925.

Our Forfeiture of Lease (Housing Act repossession) policy protects lenders against financial loss in the event the landlord successfully evicts the borrower under the Housing Act for non-payment of ground rent, instead of issuing forfeiture of lease proceedings.

Our policy covers the lender for legal costs in defending a claim, and any shortfall in the outstanding debt under the mortgage, if the landlord repossesses the property. Premiums start at just £42 for a policy limit of £50,000.

More information can be found on our products page under the ‘Forfeiture of Lease’ heading.

If your firm deals with a large number of leasehold transactions where this cover would be required, then get in touch with our Business Development team to see if a block scheme could save you time, and save your client money.