Answers for England and Wales

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Question: 5.15.2. If different from 1.11, contact point if there are apparent problems with the management company:

Lender Answer
Accord Buy to Let As 1.11a.

IMPORTANT NOTICE - RENTCHARGES (INCLUDING SERVICE CHARGES ON FREEHOLD PROPERTY and ESTATE RENTCHARGES):

Our legal adviser should make all reasonable enquiries to ascertain whether the property is subject to rentcharges or service charges (especially, but not only, where the property is a recently built freehold property).

Where a property is subject to a rentcharge or freehold service charge:

• [“The first requirement”] Where either: (i) the statutory remedies for non-payment contained in Section 121 of the Law of Property Act 1925 will apply, or (ii) the rentcharge / service charge instrument provides for powers of re-entry or other enforcement powers available for non-payment (including, for example, the creation of a lease) , then the collector/recipient of the rentcharge / service charge must be obliged to give both the property owner and any lender written notice of the arrears together with at least 2 months’ written notice to remedy the breach. In addition, should further action be proposed regarding non-payment the collector/recipient must be obliged to notify any lender, in writing, of such action and if a lease were created by way of enforcement powers, the rentcharge / service charge instrument must clearly state that on payment of all arrears, costs of collecting arrears, all legal costs including court costs and costs of creating and surrendering the lease, then the lease must be surrendered. All costs must be reasonable. The agreement must specifically state no premium can be charged to surrender the lease.;

• [“The second requirement”] In addition, the current annual amount payable under any rentcharge or service charges (or, if the property is affected by more than one rentcharge, the total amount payable under all of them) must not exceed £500 in present value and must not be capable of escalating such that the amount more than doubles every 25 years. In addition the calculation of the charge must be clearly set out and the charge should be subject to annual accounting obligations, and be capable of challenge in respect of reasonableness.;

• [“The third requirement”] In addition, any rentcharge or service charge must, in return for the rentcharge or service charge payments, contain covenants on behalf of the rentcharge owner or service charge recipient to perform or provide services in respect of common areas/facilities and/or the recipient of the service charge payments to perform to provide services.

• If the existing, or proposed, rentcharge agreement does not meet the first requirement, the second requirement or the third requirement, a deed of variation will be required. An indemnity policy will not be an acceptable alternative except where the charge relates to an historic rentcharge which: (a) is not related to services being provided; and (b) has not been collected for 12 years or more – in which case you should obtain a suitable indemnity policy to protect our position.

• The rentcharge / deed that created the positive covenant to pay a service charge must contain covenants on behalf of the management company to maintain the common areas/facilities of the estate, in return for the payments.

You should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).

The above requirements also apply where residents of the estate are members/shareholders of the management company.
Accord Mortgages Ltd As 1.11a.

IMPORTANT NOTICE - RENTCHARGES (INCLUDING SERVICE CHARGES ON FREEHOLD PROPERTY and ESTATE RENTCHARGES):

Our legal adviser should make all reasonable enquiries to ascertain whether the property is subject to rentcharges or service charges (especially, but not only, where the property is a recently built freehold property).

Where a property is subject to a rentcharge or freehold service charge:

• [“The first requirement”] Where either: (i) the statutory remedies for non-payment contained in Section 121 of the Law of Property Act 1925 will apply, or (ii) the rentcharge / service charge instrument provides for powers of re-entry or other enforcement powers available for non-payment (including, for example, the creation of a lease) , then the collector/recipient of the rentcharge / service charge must be obliged to give both the property owner and any lender written notice of the arrears together with at least 2 months’ written notice to remedy the breach. In addition, should further action be proposed regarding non-payment the collector/recipient must be obliged to notify any lender, in writing, of such action and if a lease were created by way of enforcement powers, the rentcharge / service charge instrument must clearly state that on payment of all arrears, costs of collecting arrears, all legal costs including court costs and costs of creating and surrendering the lease, then the lease must be surrendered. All costs must be reasonable. The agreement must specifically state no premium can be charged to surrender the lease.;

• [“The second requirement”] In addition, the current annual amount payable under any rentcharge or service charges (or, if the property is affected by more than one rentcharge, the total amount payable under all of them) must not exceed £500 in present value and must not be capable of escalating such that the amount more than doubles every 25 years. In addition the calculation of the charge must be clearly set out and the charge should be subject to annual accounting obligations, and be capable of challenge in respect of reasonableness.;

• [“The third requirement”] In addition, any rentcharge or service charge must, in return for the rentcharge or service charge payments, contain covenants on behalf of the rentcharge owner or service charge recipient to perform or provide services in respect of common areas/facilities and/or the recipient of the service charge payments to perform to provide services.

• If the existing, or proposed, rentcharge agreement does not meet the first requirement, the second requirement or the third requirement, a deed of variation will be required. An indemnity policy will not be an acceptable alternative except where the charge relates to an historic rentcharge which: (a) is not related to services being provided; and (b) has not been collected for 12 years or more – in which case you should obtain a suitable indemnity policy to protect our position.

• The rentcharge / deed that created the positive covenant to pay a service charge must contain covenants on behalf of the management company to maintain the common areas/facilities of the estate, in return for the payments.

You should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).

The above requirements also apply where residents of the estate are members/shareholders of the management company.
Adam & Company See 1.11
Adam & Company International See 1.11

Ahli United Bank (UK) plc Central Administration Unit
Aldermore Bank PLC As 1.11.

ESTATE RENT CHARGES
If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:
1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development .
An indemnity policy will not be an acceptable alternative except where the charge relates to an historic rentcharge which: (a) is not related to services being provided; and (b) has not been collected for 12 years or more – in which case you should obtain a suitable indemnity policy to protect our position- and provided the conveyancer is satisfied and confirm that the insurance provides an adequate solution to the issue identified, including issues of unknown restrictive covenants, and an unqualified certificate of title can be provided
Allied Irish Bank (GB), a trading name of AIB Group (UK) Refer to AIB Group (UK) plc, Central Securities (GB), 92 Anne Street, Belfast, BT1 3H
April Mortgages As per 1.11
Atom Bank plc As per 1.11.
Aviva Equity Release UK Ltd See 1.11
Bank of China mortgages@bank-of-china.com
Bank of Ireland (UK) plc See 1.11
Bank of Ireland as Bank of Ireland Mortgages See 1.11
Bank of Scotland Beginning A Bank of Scotland Plc, Mortgage Operations, Pentland House, 8 Lochside Avenue, Edinburgh, EH12 9DJ. Tel: 0345 603 1136 Fax: 0131 339 2366
Bank of Scotland Beginning O Address and telephone number on the Mortgage Offer.
Bank of Scotland Private Banking  
Barclays Bank UK PLC Issuing Office, if all avenues to resolve have been exhausted.

IMPORTANT: ESTATE RENT CHARGES: Where a rent charge is payable on the property it will be acceptable, and as such you need not contact the issuing office, where at least one of the following is satisfied:
1. Where the rent charge owner is a management company owned by the residents of a private freehold development (as shareholders).
2. Where the statutory remedies in section 121 of the Law of Property Act have been expressly excluded in the rent charge instrument.
3. Where the rent charge instrument contains notification to the mortgagee of at least 21 days prior to any enforcement action by the rent charge owner.
Barnsley Building Soc, a trading name Yorkshire Building Soc As 1.11a.

IMPORTANT NOTICE - RENTCHARGES (INCLUDING SERVICE CHARGES ON FREEHOLD PROPERTY and ESTATE RENTCHARGES):

Our legal adviser should make all reasonable enquiries to ascertain whether the property is subject to rentcharges or service charges (especially, but not only, where the property is a recently built freehold property).

Where a property is subject to a rentcharge or freehold service charge:

• [“The first requirement”] Where either: (i) the statutory remedies for non-payment contained in Section 121 of the Law of Property Act 1925 will apply, or (ii) the rentcharge / service charge instrument provides for powers of re-entry or other enforcement powers available for non-payment (including, for example, the creation of a lease) , then the collector/recipient of the rentcharge / service charge must be obliged to give both the property owner and any lender written notice of the arrears together with at least 2 months’ written notice to remedy the breach. In addition, should further action be proposed regarding non-payment the collector/recipient must be obliged to notify any lender, in writing, of such action and if a lease were created by way of enforcement powers, the rentcharge / service charge instrument must clearly state that on payment of all arrears, costs of collecting arrears, all legal costs including court costs and costs of creating and surrendering the lease, then the lease must be surrendered. All costs must be reasonable. The agreement must specifically state no premium can be charged to surrender the lease.;

• [“The second requirement”] In addition, the current annual amount payable under any rentcharge or service charges (or, if the property is affected by more than one rentcharge, the total amount payable under all of them) must not exceed £500 in present value and must not be capable of escalating such that the amount more than doubles every 25 years. In addition the calculation of the charge must be clearly set out and the charge should be subject to annual accounting obligations, and be capable of challenge in respect of reasonableness.;

• [“The third requirement”] In addition, any rentcharge or service charge must, in return for the rentcharge or service charge payments, contain covenants on behalf of the rentcharge owner or service charge recipient to perform or provide services in respect of common areas/facilities and/or the recipient of the service charge payments to perform to provide services.

• If the existing, or proposed, rentcharge agreement does not meet the first requirement, the second requirement or the third requirement, a deed of variation will be required. An indemnity policy will not be an acceptable alternative except where the charge relates to an historic rentcharge which: (a) is not related to services being provided; and (b) has not been collected for 12 years or more – in which case you should obtain a suitable indemnity policy to protect our position.

• The rentcharge / deed that created the positive covenant to pay a service charge must contain covenants on behalf of the management company to maintain the common areas/facilities of the estate, in return for the payments.

You should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).

The above requirements also apply where residents of the estate are members/shareholders of the management company.
Birmingham Bank mortgages@birminghambank.com
Birmingham Midshires Completions Team at office issuing mortgage instructions. See Offer for contact details.
Bluestone Mortgages As per 1.11.
Bradford & Bingley Limited As 1.11a
Britannia, a trading name of The Co-operative Bank plc Britannia New Lending Britannia House Leek Staffordshire Moorlands ST13 5RG or Britannia New Lending DX 16351 Leek. Telephone and Fax numbers as shown on the letter enclosing the Offer of Advance
Buckinghamshire Building Society Buckinghamshire Building Society, High Street,
Chalfont St Giles, Bucks,
HP8 4QB
e-mail mortgages@bucksbs.co.uk
Tel: 01494 879517
Fax: 01494 877259
Chelsea Building Society (a trading name of Yorkshire BS) As 1.11a.

IMPORTANT NOTICE - RENTCHARGES (INCLUDING SERVICE CHARGES ON FREEHOLD PROPERTY and ESTATE RENTCHARGES):

Our legal adviser should make all reasonable enquiries to ascertain whether the property is subject to rentcharges or service charges (especially, but not only, where the property is a recently built freehold property).

Where a property is subject to a rentcharge or freehold service charge:

• [“The first requirement”] Where either: (i) the statutory remedies for non-payment contained in Section 121 of the Law of Property Act 1925 will apply, or (ii) the rentcharge / service charge instrument provides for powers of re-entry or other enforcement powers available for non-payment (including, for example, the creation of a lease) , then the collector/recipient of the rentcharge / service charge must be obliged to give both the property owner and any lender written notice of the arrears together with at least 2 months’ written notice to remedy the breach. In addition, should further action be proposed regarding non-payment the collector/recipient must be obliged to notify any lender, in writing, of such action and if a lease were created by way of enforcement powers, the rentcharge / service charge instrument must clearly state that on payment of all arrears, costs of collecting arrears, all legal costs including court costs and costs of creating and surrendering the lease, then the lease must be surrendered. All costs must be reasonable. The agreement must specifically state no premium can be charged to surrender the lease.;

• [“The second requirement”] In addition, the current annual amount payable under any rentcharge or service charges (or, if the property is affected by more than one rentcharge, the total amount payable under all of them) must not exceed £500 in present value and must not be capable of escalating such that the amount more than doubles every 25 years. In addition the calculation of the charge must be clearly set out and the charge should be subject to annual accounting obligations, and be capable of challenge in respect of reasonableness.;

• [“The third requirement”] In addition, any rentcharge or service charge must, in return for the rentcharge or service charge payments, contain covenants on behalf of the rentcharge owner or service charge recipient to perform or provide services in respect of common areas/facilities and/or the recipient of the service charge payments to perform to provide services.

• If the existing, or proposed, rentcharge agreement does not meet the first requirement, the second requirement or the third requirement, a deed of variation will be required. An indemnity policy will not be an acceptable alternative except where the charge relates to an historic rentcharge which: (a) is not related to services being provided; and (b) has not been collected for 12 years or more – in which case you should obtain a suitable indemnity policy to protect our position.

• The rentcharge / deed that created the positive covenant to pay a service charge must contain covenants on behalf of the management company to maintain the common areas/facilities of the estate, in return for the payments.

You should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).

The above requirements also apply where residents of the estate are members/shareholders of the management company.
CHL Mortgages As per 1.11
Clydesdale Bank plc Mortgage Services
PO BOX 3105
Clydebank
Glasgow
G60 9AU
Tel - 0800 121 4203
Co-operative Bank plc See 1.11a earlier.
Coutts See 1.11
Coutts Finance Co See 1.11
Coventry Building Society New Lending Department,
Oakfield House,
PO Box 600, Binley,
Coventry,
CV3 9YR

ESTATE RENT CHARGES
If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:
1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development .

If condition 2 (above) is satisfied, you should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).
Cynergy Bank As per 1.11.b
Danske Bank As at 1.11a
Darlington Building Society Customer Support Department, Principal Office
DB UK Bank Ltd db mortgages
PO Box 890
Newport
NP20 9LZ
Tel: 0845 650 6281
DX Address - not available
Dudley Building Society As 1.11a
Ecology Building Society As 1.7
Family Building Soc (a trading name of National Counties BS) Loans Underwriting Department, Ebbisham House, 30 Church Street, Epsom, Surrey KT17 4NL
Email: loansunderwriting@familybsoc.co.uk

ESTATE RENT CHARGES
If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:
1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause; or
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge; or
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development.

If the existing or proposed rent charge agreement doesn’t meet the above requirement, a deed of variation is required. Where a deed of variation is required, an indemnity policy is not an acceptable alternative.

First Direct  
Fleet Mortgages See 1.11a

RENT CHARGES

We expect our conveyancers to make enquiries to discover whether or not the property is subject to rent charges.

Where the property is subject to a rent charge, an indemnity policy will be acceptable where the charge relates to an historic rent charge where there are no services being provided and the rent has not been collected for 12 years or more or where the rent has been collected within the last 12 years but the owner of the rent charge cannot, after reasonable enquiries, be located.

In the case of estate rent charges where services are being provided, these are acceptable if either;
• The terms of the estate rent charge specifically exclude the provisions of section 121 of the Law of Property Act 1925; or
• The terms of the estate rent charge include a mortgagee protection clause which states that at least 28 days notice must be given to any mortgagee prior to any action for non-payment or other enforcement action being taken (including the exercise of the remedies contained in section 121 of the Law of Property Act 1925) by the owner of the estate rent charge; or
• The owner of the estate rent charge is a management company owned by the residents, who are the shareholders of a private freehold development.

In all other cases, a deed of variation is required, and an indemnity policy will not be acceptable.

Any indemnity policy put in place must fully protect Fleet in all circumstances, for example, it must not exclude an indemnity if the mortgage is not in arrears.

Foundation Home Loans See 1.11a
Furness Building Society As 1.11a
GE Money Home Lending Ltd GE Money Home Lending has withdrawn from the UK mortgage market.
Gen H As 1.11a

If the property is freehold and subject to estate rent charges, please note the following:
1. Where the charge is historic, is not related to services being provided and has not been collected for 12 years or more, then an appropriate indemnity policy should be
obtained on completion to protect our security.
2. Where an estate rent charge has been collected in the last 12 years and/or relates to the costs of services being provided, it will be acceptable in one of the following
circumstances:
a. Where the rent charge owner is a management company owned by the residents of a private freehold development (as shareholders) and the Customer will become a
shareholder on completion.
b. Where the statutory remedies in section 121 of the Law of Property Act have been expressly excluded in the rent charge instrument.
c. Where the rent charge instrument contains a mortgagee protection clause which states that notification will be provided to the mortgagee of at least 2 months prior to any
enforcement action by the rent charge owner.
Godiva Mortgages Ltd New Lending Department,
Oakfield House,
PO Box 600, Binley,
Coventry,
CV3 9YR

ESTATE RENT CHARGES
If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:
1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development .

If condition 2 (above) is satisfied, you should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).
Habito as per 1.11
Halifax Customer Service Centre (see offer for address and fax number)
Halifax Loans Ltd Mortgages Helpdesk, Mortgage Operations, trinity Road, Halifax HX1 2RG
Hampden & Co. plc See 1.11
Handelsbanken Refer to Branch office instructing you.
Harpenden Building Society As 1.11a
Hinckley and Rugby Building Society Principal Office, Completions Team
Hodge As per 1.11a
Hodge Equity Release As per 1.11a
Holmesdale Building Society Lender.
HSBC UK Bank plc  
Intelligent Finance Securities, Intelligent Finance, PO Box 890, Leeds, LS1 9UG


Investec Bank plc See 1.11
ITL Mortgages New Lending Department,
Oakfield House,
PO Box 600, Binley,
Coventry,
CV3 9YR

ESTATE RENT CHARGES
If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:
1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development .

If condition 2 (above) is satisfied, you should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).
JPMorgan Chase Bank, N.A. Refer to office issuing Mortgage Instructions.
Kensington Mortgage Company Ltd Kensington Mortgages, New Business Operations Centre, Ascot House, Maidenhead Office Park, Maidenhead, SL6 3QQ. Tel: 03444 990011 Fax: 03444 990022.

IMPORTANT ESTATE RENT CHARGES:

Where a rent charge is payable on the property it will be acceptable where at least one of the following is satisfied:
1. Where the rent charge owner is a management company owned by the residents of a private freehold development (as shareholders).
2. Where the statutory remedies in section 121 of the Law of Property Act have been expressly excluded in the rent charge instrument.
3. Where the rent charge instrument contains notification to the mortgagee of at least 21 days prior to any enforcement action by the rent charge owner.
Kent Reliance (a trading name of OneSavings Bank plc) Estate Rent Charges.

If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:

1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.

2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of a least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.

3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development.

If condition 2 (above) is satisfied, you should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).
Keystone Property Finance As 1.11a
Landbay Partners Limited See 1.11a Legals@landbay.co.uk.
Landmark Mortgages Limited New Mortgage Completions
Landmark Mortgages
PO Box 656
Durham
DH1 9LY

Tel - 0330 159 7152
Leeds Building Society As per 1.11a.

Estate Rentcharges

If an estate rent charge is payable on a property, this will be acceptable on the basis that one of the following conditions can be satisfied, otherwise a deed of variation will be required (an indemnity policy is not an acceptable alternative):

1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development.

Where a rent charge relates to an historic charge, is not related to services being provided and has not been collected for 12 years or more, then an appropriate indemnity policy should be obtained to protect the Society.

The current annual amount payable under any rentcharge (or, if the property is affected by more than one rentcharge, the total amount payable under all of them) must not exceed 0.2% of the present value of the property and must not be capable of escalating such that the amount more than doubles every 25 years.
Legal & General Home Finance Ltd See 1.11a
LendInvest See 1.11a
LiveMore Capital As 1.11a
Lloyds Bank plc pre fixed 20/40 Mortgage Processing. Please see 1.11.
Lloyds Bank plc pre fixed 50/30/77 Mortgage Processing. Please see 1.11a
Lloyds TSB Scotland plc Mortgage Processing. Please see 1.11a
M&S Bank M&S Bank, PO Box 12, Skipton, BD23 2HL. Telephone Number 0345 002 1128 Fax 0345 111 0322
Magellan Homeloans Issuing Office
Manchester Building Society Underwriting Department.
Market Harborough Building Society As per 1.7
Masthaven Bank As per 1.11.
Metro Bank plc As per 1.11.
ModaMortgages Email our Completions Team at completions@modamortgages.co.uk. Please include the Mortgage Reference Number which is on the first page of the Mortgage Offer.

If the estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:

1. The provision under section 121 of the Last of the Property Act has been excluded under the rent charge clause.

2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.

3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private development.

If condition 2 (above) is satisfied, you should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).
Molo Finance As 1.11a.
Monmouthshire Building Society Lending Operations Department
Monmouthshire Building Society
Monmouthshire House
John Frost Square
Newport
NP20 1PX

IMPORTANT NOTICE - RENTCHARGES (INCLUDING ESTATE RENTCHARGES):

Our legal adviser should make all reasonable enquiries to ascertain whether the property is subject to rentcharges (especially, but not only, where the property is a recently built freehold property).
Where a property is subject to a rentcharge:

Where a charge has been collected in the last 12 years or relates to the costs of services being provided, it will be acceptable providing that the collector/recipient of the charge must give the property owner and any lender notice of arrears and give them 2 months’ notice to remedy the breach. Additionally, if further action is taken regarding non-payment the collector/recipient must notify the lender of such action. If the agreement doesn’t include these details a deed of variation is required.

1st Requirement - Where either: (i) the statutory remedies for non-payment contained in Section 121 of the Law of Property Act 1925 will apply, or (ii) the rentcharge instrument provides for powers of re-entry or other enforcement powers, then the collector/recipient of the rentcharge must be obliged to give both the property owner and any lender written notice of the arrears together with at least 2 months’ written notice to remedy the breach. In addition, should further action be proposed regarding non-payment the collector/recipient must be obliged to notify any lender, in writing, of such action;

2nd Requirement - In addition, the current annual amount payable under any rentcharge (or, if the property is affected by more than one rentcharge, the total amount payable under all of them) must not exceed £500 in present value and must not be capable of escalating such that the amount more than doubles every 25 years;

3rd Requirement - In addition, any rentcharge must, in return for the rentcharge payments, contain covenants on behalf of the rentcharge owner to perform or provide services in respect of common areas/facilities.

If the existing, or proposed, rentcharge agreement does not meet the first requirement, the second requirement or the third requirement, a Deed of Variation will be required.
In addition -
• An indemnity policy will not be an acceptable alternative except where the charge relates to an historic rentcharge which: (a) is not related to services being provided; and (b) has not been collected for 12 years or more – in which case you should obtain a suitable indemnity policy to protect our position.
• The rentcharge must contain covenants on behalf of the management company to maintain the common areas/facilities of the estate, in return for the rentcharge paym
Mortgage Agency Services Mortgage Agency Services PO Box 138 Plymouth Devon PL1 1XY
Mortgage Express As 1.11a
Mortgage Express No 2  
MPowered Mortgages Contact as per 1.11a, if all attempts to resolve have been exhausted

IMPORTANT: ESTATE RENT CHARGES: Where a rent charge is payable on the property it will be acceptable on provision that at least one of the following is satisfied:
1. Where the rent charge owner is a management company owned by the residents of a private freehold development (as shareholders).
2. Where the statutory remedies in section 121 of the Law of Property Act have been expressly excluded in the rent charge instrument.
3. Where the rent charge instrument contains notification to the mortgagee of at least 21 days prior to any enforcement action by the rent charge owner.

Please also refer to Section 5.14.9
National Counties Building Society Loans Underwriting Department, Ebbisham House, 30 Church Street, Epsom, Surrey KT17 4NL
Email: loansunderwriting@ncbs.co.uk

ESTATE RENT CHARGES
If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:
1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause; or
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge; or
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development.

If the existing or proposed rent charge agreement doesn’t meet the above requirement, a deed of variation is required. Where a deed of variation is required, an indemnity policy is not an acceptable alternative.
National Westminster Bank plc As 1.11a
Nationwide Building Society Issuing Office
IMPORTANT ESTATE RENT CHARGES:

Where the charge relates to an historic charge, is not related to services being provided and has not been collected for 12 years or more, then an appropriate indemnity policy should be obtained to protect us.

Where the Charger of the Historic Rent Charge is absent and the Rent has not been collected for less than 12 years, sufficient attempts previously must have been made to locate the Rent Charger. If no contact has been made through these attempts then we will accept an appropriate Indemnity Insurance. For the avoidance of doubt, if details of the Rent Charge Owner are missing in entirety, we will accept an Indemnity Insurance without attempts of contact.

Where a charge has been collected in the last 12 years or relates to the costs of services being provided, it will be acceptable providing that the collector/recipient of the charge must give the property owner and any lender notice of arrears and give them 2 months’ notice to remedy the breach. Additionally, if further action is taken regarding non-payment the collector/recipient must notify the lender of such action. If the agreement doesn’t include these details a deed of variation is required.

Further, in the event of non-payment the agreement must either:
1. Specifically prohibit the collector/recipient from being able to create a lease over the property, or
2. If a lease is created the agreement must clearly state that on payment of: all arrears, costs of collecting arrears, all legal costs including court costs and costs of creating and surrendering the lease, then the lease must be surrendered. All costs must be reasonable. The agreement must specifically state no premium can be charged to surrender the lease.
If the agreement doesn’t include these details a deed of variation is required.

Where a deed of variation is required, an indemnity policy is not an acceptable alternative.

The above requirements also apply where residents of the estate are members/shareholders of the management company.

The above requirements will only apply to a statutory rent charge and not where the payment obligation is created by a personal positive covenant/restriction.
Nedbank Private Wealth Ltd You must refer to us.
New Street Mortgages New Street Mortgages, PO Box 4761, Maidenhead, SL60 1HW. Tel: 0333-300-3100, Fax: 0333-300-3132, email: enquiries@newstreetmortgages.com
NRAM Ltd See 1.11a
Paragon Buy to Let Mortgages As 1.11a.
Paragon Residential Owner-Occupied Mortgages As 1.11a.
Paratus AMC Ltd New Business Department, Foundation Home Loans, 5 Arlington Square, Downshire Way, Bracknell, RG12 1WA
email: FHL@foundationhomeloans.co.uk
Tel: 0344 770 8033
Parity Trust As 1,7
Pepper Money Pepper Money Completions Department Tel No. 0333 370 1101 or email lendingenquiries@pepper.money
Pepper Money (PUK) Pepper Money Completions Department Tel No. 0333 370 1101 or email lendingenquiries@pepper.money
Perenna Please contact our Mortgage team by either telephone: 0330 341 2013 or Email: conveyancing@perenna.co.uk
Platform (a trading name of The Co-operative Bank p.l.c.) Refer to office issuing Mortgage Instructions.
Precise Mortgages (Charter Court Financial Services Ltd) Estate Rent Charges.

If an estate rent charge is payable on a property, we confirm this will be acceptable on the basis that one of the following conditions can be satisfied:

1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.

2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of a least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.

3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development.

If condition 2 (above) is satisfied, you should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).
Principality Building Society As in 1.7:
Mortgage New Business
PO Box 89
Queen Street
CARDIFF
CF10 1UA
0330 333 4021
Reliance Bank Ltd mortgages@reliancebankltd.com or
0207 398 5422 - Option 1 Discuss New Lending/Option 2 Discuss existing Reliance Bank Mortgage
Rooftop Mortgages Ltd The address and contact details shown on the mortgage offer.
Saffron Building Society Mortgage Processing Team
Saffron Building Society, Saffron House, 1A. Market Street, Saffron Walden, Essex. CB10 1HX

Mortgage.processing@saffronbs.co.uk
Telephone 01799 582966
Fax 01799 581901

Sainsbury's Bank Contact point as detailed in 1.11a.
Santander UK plc Refer to Mortgage Operations office instructing you.
Scottish Building Society  
Scottish Widows Bank New Business Processing (see 1.11a).
Secure Trust Bank PLC As 1.11
Skipton Building Society Completions Team via LMS Secure Link.

IMPORTANT NOTICE - RENTCHARGES (INCLUDING ESTATE RENTCHARGES):

If a rentcharge (including estate rentcharge) is payable on a property, we confirm this will be acceptable on the basis that the charge is reasonable and one of the following conditions can be satisfied:

1. The rentcharge owner is a management company owned by residents (as shareholders) of a private freehold development .
2. The provision under section 121 of the Law of Property Act 1925 has been excluded under the rentcharge clause.
3. The rentcharge clause includes a mortgage protection clause, which states that notice of at least 28 will be provided to the mortgagee prior to any enforcement action being taken by the owner of the rent charge .

If condition 3 (above) is satisfied, you should also consider whether a suitable indemnity policy should be taken out to further protect our interest (the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).
St James Place Bank Mortgage Administration, St James's Place Bank, Administration Centre, PO Box 1869, Livingston EH54 7XS
State Bank of India UK As 1.11a.
Swansea Building Society 11/12 Cradock Street
Swansea
SA1 3EW
01792 739100
The Mortgage Business The Mortgage Business, PO Box 548, Leeds LS1 1WU. Fax no. 0845 6039009
The Mortgage Lender Limited completions@themortgagelender.com

Tel: 0344 257 0426
The Mortgage Works Issuing Office - Originations
IMPORTANT: ESTATE RENT CHARGES:

Where the charge relates to an historic charge, is not related to services being provided and has not been collected for 12 years or more, then an appropriate indemnity policy should be obtained to protect us.

Where a charge has been collected in the last 12 years or relates to the costs of services being provided, it will be acceptable providing that the collector/recipient of the charge must give the property owner and any lender notice of arrears and give them 2 months’ notice to remedy the breach. Additionally, if further action is taken regarding non-payment the collector/recipient must notify the lender of such action. If the agreement doesn’t include these details a deed of variation is required.

Further, in the event on non-payment the agreement must either:
1. Specifically prohibit the collector/recipient from being able to create a lease over the property, or
2. If a lease is created the agreement must clearly state that on payment of: all arrears, costs of collecting arrears, all legal costs including court costs and costs of creating and surrendering the lease, then the lease must be surrendered. All costs must be reasonable. The agreement must specifically state no premium can be charged to surrender the lease.
If the agreement doesn’t include these details a deed of variation is required.

Where a deed of variation is required, an indemnity policy is not an acceptable alternative.
The above requirements also apply where residents of the estate are members/shareholders of the management company.
The above requirements will only apply to a statutory rent charge and not where the payment obligation is created by a personal positive covenant/restriction.
The Royal Bank of Scotland plc As detailed above in 1.11a.
The Royal Bank of Scotland plc Direct Line Mortgages As detailed above in 1.11a.
The Royal Bank of Scotland plc Direct Line One As detailed above in 1.11a.
The Royal Bank of Scotland plc First Active As detailed above in 1.11a
The Royal Bank of Scotland plc Natwest one Account As detailed above in 1.11a.
The Royal Bank of Scotland plc One Account As detailed above in 1.11a.
The Royal Bank of Scotland plc Virgin One As detailed above in 1.11a.
The Tipton & Coseley Building Society Mortgage Department.
Together Personal Finance Limited Contact point as detailed in 1.11a above.
Topaz Finance Ltd Topaz Finance Limited
Gateway House, Gargrave Road,
Skipton,
North Yorkshire,
BD23 2HL
0345 389 1672
TSB Bank plc Mortgage Processing. Please see 1.11a
Ulster Bank As detailed above in 1.11a.
Vida Homeloans As 1.11a

Historic rent charges - 1.1. Where the Rent Charge remains unpaid and there has been no contact from third party (whether or not a copy of the rent charge is available)

1.1.1. Where a copy of the Rent Charge is provided or can be obtained, this is acceptable provided you ensure that:

• the rent charge amount is fixed;
• there are no other unusual terms (including any positive covenants); and
• you enquire whether there has been any contact from a third party regarding the historic Rent Charge. If there has been contact, you must report details to us (see part 2).
1.1.2. Where a copy of the Rent Charge cannot be obtained, this is acceptable provided you ensure that:

• appropriate searches for a copy of the rent charge have been made;
• you enquire whether there has been any contact from a third party regarding the historic Rent Charge. If there has been contact, you must report details to us (see part 2).

1.1.3. In either case (whether or not a copy of the Rent Charge is available), you must effect indemnity insurance (see section 9) which (as a minimum):

• is for 110% of the purchase price or valuation;
• names the borrower(s)on the policy (or meet our requirements in section 9);
• covers the lender for financial loss resulting from the borrower/customer defaulting on the mortgage and there being a shortfall on the mortgage due to a rent charge lease being registered to the property;
• covers historic arrears;
• covers legal expenses;
• covers the position where a copy of the rent charge cannot be located (if applicable) and
• covers anticipated losses should the rent charge owner enforce their remedies, including the cost of arranging a surrender of a lease under section 121 of the Law of Property Act 1925.

1.1.4. If our requirements under this section [1.1] are not satisfied, please report this to us immediately.

1.2. Where the Rent Charge has been paid and is up to date, the Rent Charge owner is known and a copy of the Rent Charge is available

1.2.1. A copy of the Rent Charge should be provided and you must ensure that:

• the Rent Charge amount is no more than £500 per annum;
• the Rent Charge does not double more than every 20 years; and
• there are no other unusual terms (including any positive covenants).
1.2.2. You and the borrower(s) should consider whether there is a reasonable possibility of redeeming the Rent Charge (but this is not mandatory).

1.2.3. If our requirements under this section [1.2] are not satisfied, please report this to us immediately.

1.3. Where you are informed that the Rent Charge has been redeemed

1.3.1. You must ensure that the Rent Charge has been correctly redeemed and, if not already removed, you must remove the entry from the property title following completion. If this is confirmed, then no further conditions are required. This can be treated as though there is no Rent Charge.

1.3.2. Where you are not satisfied that the Rent Charge has been correctly redeemed, you must ensure the Rent Charge is correctly redeemed. You must remove the entry from the property title following completion. If this is confirmed, then no further conditions are required. This can be treated as though there is no Rent Charge.

1.3.3. If our requirements under this section [1.3] are not satisfied, please report this to us immediately.


2. Estate Rent Charges

2.1. A copy of the Estate Rent Charge should be provided and you must check this to ensure that:

• the Estate Rent Charge’s annual present value is no more than £500 per annum and is paid up to date;
• the Estate Rent Charge value cannot double more than every 20 years;
• the owner of the Estate Rent Charge contracts out of section 121 of the Law of Property Act 1925 (enforcement rights);
• the Estate Rent Charge owner is to provide at least 28 days’ notice to the lender prior to enforcement action being taken;
• there are no other unusual terms, including any positive covenants; and
• the Estate Rent Charge owner must be the developer of the property or a management company comprising the residents of the freehold development.

2.2. If our requirements under this section [2.1] are not satisfied, you must ensure the Estate Rent Charge is correctly amended.

2.3. If our requirements under this section [2] are not satisfied, please report this to us immediately.
Virgin Money Mortgage Processing
Operations
Virgin Money
Jubilee House
Gosforth
Newcastle upon Tyne
NE3 4PL

or DX 60350 Gosforth

Solicitors Helpline: 0845 604 4858
Whistletree (a trading name of TSB Bank plc) Details as 1.11a
Yorkshire Bank Home Loans Ltd Mortgage Services
PO BOX 3105
Clydebank
Glasgow
G60 9AU
Tel - 0800 121 4203
Yorkshire Building Society As 1.11a.

IMPORTANT NOTICE - RENTCHARGES (INCLUDING SERVICE CHARGES ON FREEHOLD PROPERTY and ESTATE RENTCHARGES):

Our legal adviser should make all reasonable enquiries to ascertain whether the property is subject to rentcharges or service charges (especially, but not only, where the property is a recently built freehold property).

Where a property is subject to a rentcharge or freehold service charge:

• [“The first requirement”] Where either: (i) the statutory remedies for non-payment contained in Section 121 of the Law of Property Act 1925 will apply, or (ii) the rentcharge / service charge instrument provides for powers of re-entry or other enforcement powers available for non-payment (including, for example, the creation of a lease) , then the collector/recipient of the rentcharge / service charge must be obliged to give both the property owner and any lender written notice of the arrears together with at least 2 months’ written notice to remedy the breach. In addition, should further action be proposed regarding non-payment the collector/recipient must be obliged to notify any lender, in writing, of such action and if a lease were created by way of enforcement powers, the rentcharge / service charge instrument must clearly state that on payment of all arrears, costs of collecting arrears, all legal costs including court costs and costs of creating and surrendering the lease, then the lease must be surrendered. All costs must be reasonable. The agreement must specifically state no premium can be charged to surrender the lease.;

• [“The second requirement”] In addition, the current annual amount payable under any rentcharge or service charges (or, if the property is affected by more than one rentcharge, the total amount payable under all of them) must not exceed £500 in present value and must not be capable of escalating such that the amount more than doubles every 25 years. In addition the calculation of the charge must be clearly set out and the charge should be subject to annual accounting obligations, and be capable of challenge in respect of reasonableness.;

• [“The third requirement”] In addition, any rentcharge or service charge must, in return for the rentcharge or service charge payments, contain covenants on behalf of the rentcharge owner or service charge recipient to perform or provide services in respect of common areas/facilities and/or the recipient of the service charge payments to perform to provide services.

• If the existing, or proposed, rentcharge agreement does not meet the first requirement, the second requirement or the third requirement, a deed of variation will be required. An indemnity policy will not be an acceptable alternative except where the charge relates to an historic rentcharge which: (a) is not related to services being provided; and (b) has not been collected for 12 years or more – in which case you should obtain a suitable indemnity policy to protect our position.

• The rentcharge / deed that created the positive covenant to pay a service charge must contain covenants on behalf of the management company to maintain the common areas/facilities of the estate, in return for the payments.

You should also consider whether a suitable indemnity policy should be taken out to further protect our interest (and the onus shall be on yourselves to approve the policy in accordance with the provisions of the Handbook).

The above requirements also apply where residents of the estate are members/shareholders of the management company.

Zephyr Homeloans As per 1.11