Ground Rent - Buying it Out in Northern Ireland

dirty

Hi,

I get an annual bill from a company in England for my ground rent. Now that we're unlikely to move in the next few years i would like to look into buying it out.
The company say that for them to prepare a quote for the buy out it will cost me £48 whether I buy or not.

Is this normal or is it even legal?

saverbuyer

It's very easy to do. You can do it yourself. It costs 9 times the annual ground rent amount and the necessary fees. You'll also need a solicitor to witness a form (should cost £15).

Just Google redemption of ground rent Northern Ireland.

dirty

Thanks for your response!
I wonder will I actually be able to circumvent this fee then.
You mean to say they are charging me £48 to multiply my ground rent by 9!!!

saverbuyer

Yes most likely just trying to make a few extra quid. Most ground rent in N.I. is small. £49 quid could be a few extra years worth.
You'll be able to avoid the fees.

Mistral001

Seems like a fairly major thing to me. You are actually transferring the land into your name. Maybe not something for the DIYist.

I got a solictor to do it for me and he did not charge very much.

Golden_Anemone

It isn't necessary to instruct a solicitor to do this. All the guidance and forms can be found on the Land Registry website.

Not sure if it's legal for rent owner to charge a fee but it should say in the legislation.

In addition to 9 times the annual ground rent there is an application fee of £50 and usually a deeds fee payable to the mortgage company.

saverbuyer

Mistral001 wrote: »

Seems like a fairly major thing to me. You are actually transferring the land into your name. Maybe not something for the DIYist.

I got a solictor to do it for me and he did not charge very much.

Don't worry. Believe me its money for old rope. There's no need for legal hand holding. It's a statutory process, you solicitor gets you to fill in the same forms you would be filling in yourself. You don't even need consent of the freeholder.

Even if they charge you £1, it would be a waste.

saverbuyer

Golden_Anemone wrote: »

It isn't necessary to instruct a solicitor to do this. All the guidance and forms can be found on the Land Registry website.

Not sure if it's legal for rent owner to charge a fee but it should say in the legislation.

In addition to 9 times the annual ground rent there is an application fee of £50 and usually a deeds fee payable to the mortgage company.

They can charge a "fee" for proof the ground rent is up to date.
However a recent receipt for payment will suffice. In fact I would insist on making this a condition of annual payment.

solicitors_rip_me_off

I have been quoted £100 plus VAT to have the solicitor do this.
I have the forms and can fill them in.
Anyone recommended an honest reliable cheap solicitor for me?

saverbuyer

solicitors_rip_me_off wrote: »

I have been quoted £100 plus VAT to have the solicitor do this.
I have the forms and can fill them in.
Anyone recommended an honest reliable cheap solicitor for me?

Just pick a small local general practise. You don't need them to fill in the forms, just witness them, like they do for countless other documents every day. It should cost a max of £15. They are not filling and submitting them forms, you do that yourself and pay the £50 fee.

HouseACA

Just picking up on this thread as our ground rent has come through.

If I bought it out & moved house in a few years, can I charge GR to the next occupier?