Estate Rent Charge – Lender Only (ER)

This policy is also known as: ‘Known Rent Charge’ and/or ‘Freehold Estate Rent Charges’ and/or ‘Rent Charges Policy’

The Estate Rent Charge insurance policy provides cover when a freehold residential property is subject to a rent charge levied to help fund services, repairs and maintenance of communal areas such as gardens, private roadways and car parks.  Estate Rent charges are usually imposed by a management company or developers to secure contributions to the costs of maintaining communal areas and as a method to enforce positive covenants.   There is a risk that default could lead to a lender’s security being compromised or even forfeited.  There may be no obligation on the rent charge owner to alert a mortgage lender that their borrower has not paid the rent charge.  Default could result in the rent charge owner creating a lease over the property in favour of trustees.  It can be costly and time consuming to secure relief through the courts.

At the time of issue, payments of rent charge must be up to date

For full terms, please see the Policy.

  • Premiums from £31.00 Incl. IPT
  • “Instant” cover for residential properties
  • Up to £3m limit of indemnity
  • Comprehensive cover for the mortgage lender
  • Electronic policies
  • Monthly statement and numerous payment options
  • BACS and cheques accepted

If you are unable to find the cover you are looking for, or if you simply wish for us to provide cover directly from our office, please contact us for a ‘Bespoke or Direct’ quote.