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Ground rent on Freehold
Ciderarmy1987
Posts: 451 Forumite
Hi
We have just got our deeds from a house we are buying and there is a clause that a ground rent of 2.75 is due each year and this is still being collect.
Is this a normal thing to be included in a freehold?
We have just got our deeds from a house we are buying and there is a clause that a ground rent of 2.75 is due each year and this is still being collect.
Is this a normal thing to be included in a freehold?
Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
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Comments
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Is part of the property leasehold? The garage perhaps?
If the property is wholly freehold, ground rent should not apply.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Paid to whom?Note: Unless otherwise stated, my property related posts refer to England & Wales. Please make sure you state if you are discussing Scotland or elsewhere as laws differ.0
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Paid to whom?
the land register says:
the land in this title is subject to a perpetual yearly rentcharge of £2.15s.0d created by a conveyance dated 11 Februray 1904 made between 1. Walter Bailey 2. Arthur Longden 3. William Alfred PittNow buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030 -
You will need to read the conveyance dated 11/2/04.
There may be rights which are bestowed on the the property owner (you) in return. Equally there may be other obligations.
Only the document in question can tell you.
Are you employing a conveyancer (who will check this) or are you DIY? If so, given your question, are you sure you are up to it?0 -
You will need to read the conveyance dated 11/2/04.
There may be rights which are bestowed on the the property owner (you) in return. Equally there may be other obligations.
Only the document in question can tell you.
Are you employing a conveyancer (who will check this) or are you DIY? If so, given your question, are you sure you are up to it?
We are employing somebody and they say that there is no problem just that we have to pay it and that it is paid up to date at the moment.
I dont really understand the relivance of the questions you have askedNow buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030 -
Then your conveyencer has clearly checked, and has informed you what your obligation will be if you buy. If you want, you could ask him for a copy of the conveyance.Ciderarmy1987 wrote: »We are employing somebody and they say that there is no problem just that we have to pay it and that it is paid up to date at the moment.
I dont really understand the relivance of the questions you have asked
My question was relevant since doing your own conveyancing requires a certain amount of knowledge which it appeared you did not have. Thus my advice that you reconsider.
However you have now confirmed you are employing someone, so my mind is put at ease!0 -
Then your conveyencer has clearly checked, and has informed you what your obligation will be if you buy. If you want, you could ask him for a copy of the conveyance.
My question was relevant since doing your own conveyancing requires a certain amount of knowledge which it appeared you did not have. Thus my advice that you reconsider.
However you have now confirmed you are employing someone, so my mind is put at ease!
Thanks for your help
Is the conveyance not on the deeds?Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030 -
This is rent charge not a ground rent, and it will be due.
They however can be bought out as follows. https://www.gov.uk/rentcharges.
What GM is referring to is estate rent charges where you may have a separate obligation to pay towards common land or areas. However as it is a rent charge of £2.75 any other obligations (which you may or may not have) would not fall under this rentcharge.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
Ciderarmy1987 wrote: »Thanks for your help
Is the conveyance not on the deeds?
'Deeds' is a loose term.
The Land Registry hold a 'Title' document (in 3 parts). This will refer to other documents as appropriate. In this case, there was a Conveyance made in 1904 (long before electronic records!) which may be a single page document or may run to several pages plus a Plan.
There may be other documents which affect the legal Title of the property. Together as a whole, these are described as 'Deeds'.
In some cases the Land Registry will have scanned the old Conveyance into their system. In some cases they will hold a paper copy. In some cases they will not have it, but will know of its existance.
Your conveyancer should obtain a copy (from the LR, or the seller, or their mortgage lender, or whoever has it), and check it for validity, and for any nasty surprises (eg the granter of the conveyance retains the right to use the garden as a cess pit as required!), and inform you.
But there is no reason you should not ask him to show it to you. After all, you're paying him!0
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