Aviva new lending criteria

Aviva have enhanced their lending criteria to recognise recent legislative changes affecting ground rent on leasehold properties.

New Ground Rent Criteria (*Subject to Valuation & valuers’ comments)

Fixed Ground Rent

• Acceptable up to the higher of £250 (outside London) or £1,000 (London), or 0.2% of property value
• More than 0.2% but less than or equal to 0.5% of property value – please complete the flat form and refer to Pre-Sales Support Team for individual
  assessment.

Escalating Ground Rent

• Acceptable up to the higher of £250 (outside London) or £1000 (London), or 0.1% of property value
• Escalation must follow one of the accepted methods:
  • Doubling: no more frequently than every 20 years
  • Fixed increases: no more frequently than every 10 years and the increase must remain below the equivalent of a doubling ground
    rent over 20 years
  • RPI-linked: no more frequently than every 10 years
  • Any escalation clause outside these methods is not acceptable