Groundlease which has not been bought-off influences your mortgage-capacity!

Purchasing customers often want to know whether an annual canon [groundlease-fee] has an impact on the maximum mortgage. The answer to this is ‘yes’. The exact mortgage amount in this case can only be calculated by the financial advisor. As a mnemonic, I recommend holding an amount of 20 times the annual ground rent. You deduct this amount from the mortgage to be obtained in case of no annual ground rent.