Typical ground rent charge

Richard_Webster

£300 a year on a new build flat in the North, doubles every 10 years!

Some very desperate buyers up there then - if I had been acting for them I would have told them to tell the builders they weren't proceeding.

Unfortunately builders prey on buyer's' naivety.

mrchiggles

Richard_Webster wrote: »

Some very desperate buyers up there then - if I had been acting for them I would have told them to tell the builders they weren't proceeding.

Unfortunately builders prey on buyer's' naivety.

Afraid so - was my first purchase, shiny new batchelor pad - didn't even bother paying attention to that sort of thing and the builder appointed solicitor didn't say anything unsurprisingly...

Am a bit more worldly wise these days!

evs50

Hi everyone


I am currently renting a small house on the Elba estate in Gowerton, Swansea. There has been a 25 year ground rent review on the estate. Most of the properties have been paying £50 and a few larger houses as much as £90 per annum (our landlord pays £50). Our property is a mid-link house worth about 100-105k. There are 3-beds ranging in price from 130-170k and I can't imagine there are many, if any, over 200k. A road about 20 yards away (not part of the site) pay around £12 a year ground rent. Anyway the proposed rates have increased by a lot. Ours would be up from £50 to £604 and many others are multiple thousands. The biggest rise I've heard is £90 to £3200 per annum. Another lady I spoke to living in a semi-detached 3 bed said hers was rising from £50 a year to the equivalent of £43 a week!


I would be interested in people's thoughts on the matter. I have read a little bit about ground rent reviews and generally they seem to be double or triple every 25 years. We have also been looking at a house in the next village which is about the same age as the Elba estate, is a leasehold and has 80 years remaining of a 99 year lease. The ground rent is currently £80 a year but I don't want to find myself in the same boat as the Elba owners in 5-6 years time. Any info, help, thoughts and advice would be most welcome.


James


Here is a story about it:


http://www.southwales-eveningpost.co.uk/Fury-rent-rise-motion-rejected/story-21253389-detail/story.html

key_mel

All of this talk of ground rent is a complete minefield; I'm in the middle of buying a £105k new-ish flat in the NE with a ground rent of £250 per year. Made sure I asked about charges etc so I was happy but it now transpires that the ground rent is soon to double - and then increase by £250 every 10 years to a maximum of £1,500 per year. I've not exchanged contracts yet but grateful for MS thoughts - should I buy or walk away?? Lovely flat but doesn't compare with my current freehold house so not desperate; I expect that as soon as the ground rent rises then the value of the flat will decrease - any guesstimates as to what amount?? Sounds like I'm on a sticky-wicket but really grateful for views anyone.

Hoploz

Another example... my mum bought a flat brand new 4 years ago. Ground rent £350 p.a. Not sure of term but guess 99 or 125.

.... After four years she has had notification that the clause in the lease about increase in ground rent would start. Increased it by about £30 a year.

... The lease stated it would increase by index link (not sure how that came to such a lot in this recession!) every 5 years, beginning from the date the lease was invented (sorry can't remember the proper term). Which was a year before the flats were even built!!!

So even if we had noticed the 5 yearly increase in rent, it was due after four years as the lease began in Jan 2009 even though mum was the first to move in when they were completed in Jan 2010!!! So please do read your lease details!!

s1ipmatt

wow I never realised ground rent could be so much. Mine is £2.40 p.a yes £2.40. I also checked the lease and it has under 900 years to go, so I should be ok.

kizkiz

s1ipmatt wrote: »

wow I never realised ground rent could be so much. Mine is £2.40 p.a yes £2.40. I also checked the lease and it has under 900 years to go, so I should be ok.

Similar here.
£10 per year and 950 year lease.