More than one in ten London leaseholders are considering selling up in response to rising ground rents and service fees, a survey has found.
Some 13% of property owners in the capital responded to Barclays research saying they were mulling such moves as charges have climbed alongside other bills in recent years.
Just 35% said they felt their ground rent and service fees were affordable, leaving the remaining 65% potentially struggling to meet such costs.
“Many homeowners have been hit by high service charges in the wake of increased inflation,” Barclays mortgages and savings head Mark Arnold explained.
Ground rents are paid where properties are built as leaseholds, meaning homeowners are charged for the space they live on.
Fees are also paid by leaseholders to companies for maintaining their buildings and surrounding areas, alongside for insurance.
According to Barclays, over a third of respondents were not aware such costs could increase when they bought properties originally.
Almost the same proportion highlighted concerns that such high associated costs could hamper their ability to sell properties in the future.
Failure to meet payments can result in properties being seized, while issues can also arise when remortgaging or selling as occupants are required to prove they can pay.
“Prospective buyers considering a leasehold property, especially in managed flats, should ask about these costs early,” Arnold warned.
“[This is] not just for peace of mind, but also because lenders will want to know about any financial obligations to make sure mortgage payments will be affordable.”