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Ground Rent Increase
Comments
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Dave_the_Ginger_Cat wrote: »Did you mean RPI, Ognum?
Dooh! Yes I did. Thanks!!!!0 -
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.:(
Yikes, that`s a big increase. E&M bought the lease for the property that I own and they recently increased the ground rent from approx £200 to £250. Reading through my lease, they can adjust it upwards every 3 years (based on "the increase in the retail price index over the past 3 years")
I was a bit naive when I purchased my place, I thought ground rent = a pepper corn rent = a small amount
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Yikes, that`s a big increase. E&M bought the lease for the property that I own and they recently increased the ground rent from approx £200 to £250. Reading through my lease, they can adjust it upwards every 3 years (based on "the increase in the retail price index over the past 3 years")
£200 to £250 is a 25% increase. I had not realised that the RPI had averaged about 7.5% over the past 3 years...
In fact, I think that the figures are:
2013 2.0
2012 2.5
2011 4.1
Which is about 9% over the 3 years... (so £200 to £218 max.)0 -
mpet - It's genuine enough, the company took over from Peverel.
Well no E & M were likely the freeholder- they simply took some ground rent billing back in house when Peveral was bought out of administration from the owners of, you guessed it, E & M- they all lead to the same ultimate owner.:eek: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 -
jjlandlord wrote: »£200 to £250 is a 25% increase. I had not realised that the RPI had averaged about 7.5% over the past 3 years...)
Aah it depends when the £200 was set. If the lease is( or was granted) say 10 years old, or the last review was 10 years ago, the index is over 10 years, not how long they have owned it or the date the lease was first sold..
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 -
propertyman wrote: »Aah it depends when the £200 was set. If the lease is( or was granted) say 10 years old, or the last review was 10 years ago, the index is over 10 years, not how long they have owned it or the date the lease was first sold..
Well of course one would need to see the actual clause.
_s79 said that they could increase the ground rent every 3 years based on the RPI over the last 3 years, so I assumed (perhaps incorrectly) that that if they increased recently they could not increase more than that irrespective of when the previous increase occurred.0 -
Very common for these flats to have an increase linked to RPI every 21 years.
This should have been explained when she bought the flat.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Richard_Webster wrote: »Very common for these flats to have an increase linked to RPI every 21 years.
This should have been explained when she bought the flat.
Try some that are every 10 years with a minimum increase of 100%.:eek: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 -
jjlandlord wrote: »Well of course one would need to see the actual clause.
_s79 said that they could increase the ground rent every 3 years based on the RPI over the last 3 years, so I assumed (perhaps incorrectly) that that if they increased recently they could not increase more than that irrespective of when the previous increase occurred.
Well that applies in s79's case and their lease but that might not be the same lease that Arched is referring to. 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
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