Ground Rent

kelsbells99

Hello

Our ground rent is currently £65/month. We have recently found out that others are paying around £12/year. There are no communal areas to be serviced (I've lived in blocks where cleaners, gardeners and handymen come every week for upkeep).

They do no work that I can see justifies the charge. Has anyone successfully received a reduction and/or refund on ground rent? Do you have any advice that could strengthen our case with them?

Many thanks

propertyman

Well ground rent is nothing to do with services it is simply rent due under the (long) lease to the landlord ( head lessor or freeholder). At £780 a year that is stupidly high- check a copy of your lease.

Are you conflating service charge for the upkeep of the exterior and structure or services, building insurance and any unadopted roads paths or parking and ground rent?

Some may pay £65 a month which could be £12 ground rent + £53 service charge.

kelsbells99

Thanks for reply, I will need to dig out the lease to check what it covers. As far as I'm aware it is a charge for ground rent, but only the lease will help I suppose!!

Even at £53/month for service they've done nothing in past 5 years, such as structural work, no parking to manage. However, there may be other costs that you've highlighted!
Thanks for your help

Fire_Fox

Which country are you in, Scotland or England/ Wales? If the latter it should be clear on your invoices whether it is ground rent or service chanrges as well as the long lease, if this is service charges you should be receiving annual accounts. You can't challenge anything until you know what you are paying for!

Structural work is usually charged separately as 'major works' - ground rent you don't get anything for, service charges covers all sorts of boring stuff from electricity and lightbulbs for common areas or outside, lift maintenance or entry system maintenance if you have these, basic clean of windows or common areas, fire alarm testing and fire extinguishers and often buildings insurance.

Read a few of these articles if you are in England or Wales
http://www.lease-advice.org/publications/

kelsbells99

Thanks for that infomation...I wish they did change bulbs and clean my windows! But as it's a maisonette we have none of those services apart from the buildings insurance. Now I'm interested as to how they have come to this figure, at least I'll have an answer either way about if it is reasonable.

Thanks again

propertyman

While structural works can be major works, the term " exterior and structure" is a widely used definition for all service charge costs relating to the building which is not the internal common area or flats.

hazyjo

Has your lease been extended? Ground rent often increases when a longer lease term has been arranged. The other flats might still have their original lease lengths.

Jx

Fire_Fox

hazyjo wrote: »

Has your lease been extended? Ground rent often increases when a longer lease term has been arranged. The other flats might still have their original lease lengths.

Jx

Actually if you extend a long lease using the statutory process the lease is extended by 99 years with a peppercorn rent, not an increased ground rent. Other agreements can certainly be made but ground rent of £65 a month is highly unusual.

propertyman

People often conflate GR and SC but the two oddest ideas I have heard are

"I have bought my flat- I don't pay charges to noone" To avoid common parts costs, they took to entering the FF flat by ladder..

and

" Why should I pay for anything. The builder sold all these flats for a lot of money and should have invested that to pay for the concierge and insurance and cleaning"

hey ho.