PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Ground Rent - London

ftb101
Posts: 4 Newbie
Hi all -
I'm a first time buyer and have had an offer accepted on a property, but just want to gauge opinion on a fair ground rent that you should be paying on a 2 bed flat in south london. Lease is under renewal at the moment & will be done before i complete, but clearly dont want to be buying a property with too high a ground rent because of resale value etc. What's a fair number? (its a 99year lease)
Thanks all
ftb101
I'm a first time buyer and have had an offer accepted on a property, but just want to gauge opinion on a fair ground rent that you should be paying on a 2 bed flat in south london. Lease is under renewal at the moment & will be done before i complete, but clearly dont want to be buying a property with too high a ground rent because of resale value etc. What's a fair number? (its a 99year lease)
Thanks all
ftb101
0
Comments
-
Maybe £500/year or less?0
-
I can only comment on my flat in North London (also 99 year lease), where the ground rent is £75 per year, rising to £150 after 30 years. Seems reasonable to me.
If I were you I would be interested in the service charges too as I know of people who pay thousands per annum whereas ours is under £500 per annum and has been since we first moved in in 1996.Mortgage to clear asap! - [STRIKE]£148,874.38 [/STRIKE]as at 1 May 2013£79,176.55 May 2018£59,516.06 July 2019November 2020 £35,914.620 -
thanks for the reply. definitely worth checking, have you heard of a ground rent being linked to the market value of the property? originally the lease renewal had it written in that after 10 years the ground rent moves to 1/2 of a percent of the value of the property. never heard of that before, and seems a bit outrageous considering property values in south london. have had it written out now and its stepping up each 33years to a round £ number, but worth people being aware of that it can happen, as would ruin the potential sell-on value of the property.
ftb1010 -
I've seen index-linked ground rents.No reliance should be placed on the above! Absolutely none, do you hear?0
-
Hi all -
I'm a first time buyer and have had an offer accepted on a property, but just want to gauge opinion on a fair ground rent that you should be paying on a 2 bed flat in south london. Lease is under renewal at the moment & will be done before i complete, but clearly dont want to be buying a property with too high a ground rent because of resale value etc. What's a fair number? (its a 99year lease)
Thanks all
ftb101
My previous 1 bedroom flat (bought in 1993) had a new lease of 99 years and ground rent which started at £100 but was due to increase to £200 in 30 years and then to £300 in 60 years.0 -
Mine's only a peppercorn ground rent (also 2bed flat in south London). It's mainly service charge that I have to pay. That and putting money aside ready for major works charges, since this block is managed by the council which means there's no sinking fund for repairs.Saving for deposit: Finished! :j
House buying: Finished!
Next task: Lots and lots of DIY0 -
Our ground rent (central London, lease from late 1990s) is £100 a year, rising to £150 after 100 years, and then up £50 every hundred years thereafter....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.3K Spending & Discounts
- 240.7K Work, Benefits & Business
- 617K Mortgages, Homes & Bills
- 175.6K Life & Family
- 253.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards