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Paying for ground rent up front
Dorsetbumpkin
Posts: 6 Forumite
Hi there!
This is my first post on MSE forum, I have recently bought a flat and the management company have asked for the first half of 2016 ground rent to be paid by 1.1.16?
Surely this should be paid at the end of the term? I also have been asked to pay for the service charges?
I wondered if anyone has faced the same issue and could give me their opinion?
Many thanks!
This is my first post on MSE forum, I have recently bought a flat and the management company have asked for the first half of 2016 ground rent to be paid by 1.1.16?
Surely this should be paid at the end of the term? I also have been asked to pay for the service charges?
I wondered if anyone has faced the same issue and could give me their opinion?
Many thanks!
0
Comments
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When you rent a place you always pay in advance, not in arrears. Why would ground rent be any different?
As for service charges, why should the management company fund services that you are buying?0 -
Ground rent is normally paid in advance but service charges are more often with a monthly payment option. Just as well as service charges are often about £1k per year compared with £100 for a typical ground rent0
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Read your lease.Service charges are often estimated at the start of the year, and then paid either monthly, quarterly, or bi-annually, with an adjustment at the end dependant on the actual annual cost.
But whatever the system, it will be in the lease.
We can't see it. You can.0 -
This is the same for me - ground rent up until the end of 2016 and service charge until end of June 2016. Seems a bit unfair but that's just the way it is.0
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Why?This is the same for me - ground rent up until the end of 2016 and service charge until end of June 2016. Seems a bit unfair but that's just the way it is.
Let's say your block has a cleaner who does the stairs each week, or a gardener, window cleaner whatever. They have to be paid in January. And Febuary. and March......
So the freeholder (or management company) needs some cash to pay them.0 -
Thanks all for some very useful advice/comments.
G_M, good advice ref the lease, I will look into that!0
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