Ground rent increase

SUPERJULES

I know some of you will love ripping me to pieces for this but since we moved into our house in 2001 the ground rent has been £2 and looking at previous papers it has been for at least 50 years, I think drawn up in 1898 for 800yrs at £10 per annum for 5 properties in total.

This year I've received a letter wanting £3 saying the increase is due to rising costs of administration and inflation??

I know it's only a pound but I thought it couldn't increase? it's not about the money it's the principle and it's bugging me. I've read through all the offical documents but although it states an amount it doesn't state anything about whether or not it can be increased.

Any help appreciated

tabskitten

Good grief!

kaych

really not sure what to say, my ground rent is going to be £325... but thanks for your post, I will check the small prints and ask around just to see whether they have the right to raise the rent any time they want.

tbs624

SUPERJULES wrote: »

I know some of you will love ripping me to pieces for this but since we moved into our house in 2001 the ground rent has been £2 and looking at previous papers it has been for at least 50 years, I think drawn up in 1898 for 800yrs at £10 per annum for 5 properties in total.

This year I've received a letter wanting £3 saying the increase is due to rising costs of administration and inflation??

I know it's only a pound but I thought it couldn't increase? it's not about the money it's the principle and it's bugging me. I've read through all the offical documents but although it states an amount it doesn't state anything about whether or not it can be increased.

Any help appreciated

Write back to them stating that the lease states clearly that the rent is £10 for the five properties per annum, that there is no mechanism within the lease for an increase (if there definitely isn't) and that you do not agree to any such increase.

If you have problems with them contact the :Leasehold Advisory Service

Richard_Webster

If the landlord wants to be really clever, unless you can show there was a formal apportionment of the ground rent between the five houses, he can ask you for the whole £10 and leave you to claim the £8 from your neighbours!

NAR

But the ground rent hasn't changed from £2. The other £1 is for admin costs to collect it.

SUPERJULES

Richard_Webster wrote: »

If the landlord wants to be really clever, unless you can show there was a formal apportionment of the ground rent between the five houses, he can ask you for the whole £10 and leave you to claim the £8 from your neighbours!

Well yeah and that's how I see it as well. I found all this sort of stuff really interesting, even if that is a bit sad:o

Thanks for replying

Fire_Fox

SUPERJULES wrote: »

I know some of you will love ripping me to pieces for this but since we moved into our house in 2001 the ground rent has been £2 and looking at previous papers it has been for at least 50 years, I think drawn up in 1898 for 800yrs at £10 per annum for 5 properties in total.

This year I've received a letter wanting £3 saying the increase is due to rising costs of administration and inflation??

I know it's only a pound but I thought it couldn't increase? it's not about the money it's the principle and it's bugging me. I've read through all the offical documents but although it states an amount it doesn't state anything about whether or not it can be increased.

Any help appreciated

Our management company tried to add VAT, I spoke to the inland revenue and found that (a) they aren't VAT registered and (b) you can't add VAT to residential ground rent. The excess was removed with some grumbling.

If you dispute anything under the terms of your lease always do so in writing by recorded delivery so you have a record of your efforts to resolve any dispute. Also good practice to pay what you think you owe rather than withhold the full amount.

kmmr

Seriously - the time to write and cost to send that letter must cost more than the £5 extra per annum they would get. You have to wonder why they would bother.

It would be cheaper for them in the long run to set the ground rent to zero.

clutton_2

are you really going to make a huge fuss about £1 ???

mjmal51

clutton wrote: »

are you really going to make a huge fuss about £1 ???

It is the principle that the OP objects to. If the freeholder adds £1 to a 1000 properties then he is getting away with it.
I have just purchased a leasehold property with 999 years (from 1960) at £12 10s (50p to some!) per year and it seems everybody has been paying £14/year recently without questioning it, so I guess that I will do so also because of the principle.