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Ground Rent Increase
Arched
Posts: 7 Forumite
Hi !. My 85 year old mum lives in a privately owned cottage on an estate for over 55's.
She has been paying £200 a year ground rent, payable half yearly. Out of the blue today she received a demand for the next six months of £182.47 so basically the ground rent has gone up from £200 to £365. It's a company called E&M Property, I'm guessing they took over when Peverel ran into problems. It seems a huge increase and I know people moan about pensioners moaning but it's a lot of money to be paying out, basically that's her heating allowance gone.
Can these companies just do this with no explaination ?. It came with a covering letter telling her that failure to pay by April first will see her hit with a fine. Bullies as far as I can tell.:(
She has been paying £200 a year ground rent, payable half yearly. Out of the blue today she received a demand for the next six months of £182.47 so basically the ground rent has gone up from £200 to £365. It's a company called E&M Property, I'm guessing they took over when Peverel ran into problems. It seems a huge increase and I know people moan about pensioners moaning but it's a lot of money to be paying out, basically that's her heating allowance gone.
Can these companies just do this with no explaination ?. It came with a covering letter telling her that failure to pay by April first will see her hit with a fine. Bullies as far as I can tell.:(
0
Comments
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What does her lease say about ground rent increases?0
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Mmmmm she's looking for it.........could be anywhere ;-) I've told her to chat to her neighbours as well. It's not so much that they've increased it but rather it's the big increase.0
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Double check this! I received an invoice for ground rent from E&M addressed to a named indivdual (who I'd never heard of) or the owner of my property. However, the ground rent was for an address I'd never heard of.
When I rang them and explained they must have made a mistake, they asked me to write in so they could take my details from the account!! I made it quite clear how I felt about that!0 -
Does your mother own the property leasehold or is she a tenant?0
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She owns it. It's a complex of around 25 similar properties.0
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mpet - It's genuine enough, the company took over from Peverel.0
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If she cannot find the lease then the Land Registry may have a copy of the lease, and the lease details (i.e. the ground rent will be £x for X amount of time then increasing to £x), providing the land is registered.0
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She'll have it somewhere I'm sure - somewhere safe
As soon as it appears I'll look at it.
Thank you0 -
Read the lease, some develops add in ground Rent increases in line with RPI so if the GR may only increase every 3,5 or 10 years but if it's in line with RPI they can eventually become huge increases.0
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Did you mean RPI, Ognum?So many glitches, so little time...0
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