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ground rent costs
slssls
Posts: 2 Newbie
Hi
I am just in the process of buying two flats in the same block. I intend letting these flats but have just been told that the ground rent (starting at £250 pa) doubles every ten years. Does this sound right? At 120 years thats over £1 million.
Regards slssls
I am just in the process of buying two flats in the same block. I intend letting these flats but have just been told that the ground rent (starting at £250 pa) doubles every ten years. Does this sound right? At 120 years thats over £1 million.
Regards slssls
0
Comments
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Are you planning to live that long?0
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yes
i am thinking about the resale value after say ten years0 -
It's a standard practice with leasehold properties for ground rent to increase by a good percentage over the term of the lease at intervals of perhaps 10/15/20/yrs. One maisonette I owned had a ground rent increase every 33yr years, so 3 increases during it's 99yr duration.
It's not going to affect the resale value at all. Due to inflation, the ground rent will always prove to be a minimal amount in the future, even £1 million in 120yrs will be peanuts. :rotfl:The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
pretty normal."enough is a feast"...old Buddist proverb0
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Hi
I am just in the process of buying two flats in the same block. I intend letting these flats but have just been told that the ground rent (starting at £250 pa) doubles every ten years. Does this sound right? At 120 years thats over £1 million.
Regards slssls
That's approx 7.18% per year, whilst ahead of inflation I wouldn't say it was 'astronomical' afterall it wasn't so long ago savings rates were around that for term bonds etc.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
My ground rent increases every 10 years too, but it starts at £100 or £125, I forget exactly0
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