Ground rent. £450 a MONTH? what do you pay?

pault123

I am in the process of buying a house. £120k 2 bed semi. I have got my valuation back from Bristol and West.

The property is Leasehold it has 954 years left. Under that it says ground rent £450 !! Surely this cant be yearly? Or is it likely to be divided by the 1000 year lease making it 0.45p a year?

What do you pay ground rent?

Paul

mummytofour

i would say thats per year thats normally how they work these things out.

divadee

I would also say thats per year.

but its unusual to have a leasehold on a house. usually they are for flats or maisonettes. when i lived in my flat it was £10 a year but it was an ex-council flat and they are usually very cheap ground rent bills

YorkshireBoy

divadee wrote:

...but its unusual to have a leasehold on a house.

Are you generalising here or just commenting on your own area?

I ask because in West Yorkshire it's extremely common indeed for terraced houses, especially ex-mill-owned properties, to be leasehold. At the back end of last year, the local press were reporting daily the problems owners were having with the leaseholding company.

Spendless

It's unusual where I am (Doncaster) for leasehold on houses. Even my 1910 2 bed MTH was freehold.

When i worked in Sheffield(20 odd miles away) though it was common to have houses that were leasehold.

I don't why this is.

Sorry- i can't be of more help

divadee

YorkshireBoy wrote:

Are you generalising here or just commenting on your own area?

I spose a bit of both, but i lived in london until 6 years ago and never heard of it there, and round here i have never heard of it either.

divadee

pault123 wrote:

What do you pay ground rent?

sorry just noticed this question ( i have put me glasses on now) the reason you pay ground rent is its what the freeholder will charge for you renting his land from him.

ie, the freeholder owns the land you are only renting the ground your property sits on from them in effect, so they can charge you a rent for this.

Have just found this link that might be of interest to you, its basic but answers some questions for you

dippy

Some new-build 2-bed terraced houses in Newcastle are also leasehold.

mando_2

Its very common in Sheffield for houses - not just terrace houses, semi's as well - to be leasehold. My leasehold is 999 years and has 950 years to go. My ground rent/lease is only £7 a year and that's between 4 houses. But mines a terrace house and my sister in-laws semi is around £25 a year.

If you get a house with a lease, the leaseholders get ground rent off you, as you are renting the ground the house is built on from them. The lease could have some rules, such as no washing on the front of the house, and if you want to build any extenstions, garages you have to apply to them to get permission before you do. This sometimes costs you money to get their permission.

HTH

Xbigman

Leasehold was common where I live in Yate (Nr bristol) at about £17 a year on late 60's terraced houses. 'Heron estates' were the ground rent controllers and leaseholders have extra conditions, like no caravan parking on the estate.
This was supposedly to keep the estate looking its best whilst being built to get the best prices for the houses. Over the years most owners bought out the lease and went freehold at a cost of a couple of thousand. You could enquire about buying the land.
Regards



X

DebtEverest

Where I live in Essex, its also common for some types of modern houses (built in last 20 years) to be leasehold, indeed my house is. We pay £25 pa ground rent.

Interestingly, when I remortgaged recently, my provider told me that the company policy was not to offer mortgages on leasehold houses.

Had they known my property was a house and not a flat - how can they make such a mistake???? - they would never have offered me a mortgage in the firstplace !!