Ground Rent gone up by 100%

glb

Hello I am after some advice. I have just received a letter informing me that my ground rent has 100% increase on previous years. I live in a leasehold flat (121 years from 1/1/2006). I received a bill for the £100 ground rent for 2016 in December 2015 and so therefore I paid in December 2015. Then when I have gotten home today I have received a bill requesting another £100. How can they increase by 100%? Is it that the land I live on has become very desirable or something? Can anyone advise before I pay it? As I really cant believe that the cost has increased so much in one year. (Also and this is naivety and stupidity but when is ground rent for other than renting the ground your property sits on?). I should also add that I do also pay service charge (which costs a fortune?!!) Can anyone help?

Irratus_Rusticus

Looks like you have a ten year escalator? Read the lease which should tell you what the start amount was in 2006 (£100 pa?) and set out the increases.

I truly hope it isn't one of them double-every-ten-years leases? Do the maths if yes.

Let's hope it is just a duplicate invoice!

Ground rent is indeed for the borrowed use of the land. Used to be a nominal amount that increased every 33 years if a 99 year lease. In new leases it can be a rip-off. You have 111 years left on the term. If it is a double-trouble don't hang around too long is my advice.

glb

how do I get a copy of the lease? I haven't any documentation from the company requesting the money other than the yearly bill they send me.

marksoton

glb wrote: »

how do I get a copy of the lease? I haven't any documentation from the company requesting the money other than the yearly bill they send me.

When you bought. Your solicitor should have provided you with a copy.

ognum

glb wrote: »

how do I get a copy of the lease? I haven't any documentation from the company requesting the money other than the yearly bill they send me.

I assume you own the flat? Did you read the lease and get a copy when you bought?

Many flats have escalating ground rent, yours could be one, no one can tell except you.

Read through your flat purchase papers your solicitor should have forwarded you a copy of the lease.

TrickyDicky101

glb wrote: »

how do I get a copy of the lease? I haven't any documentation from the company requesting the money other than the yearly bill they send me.

You must have received a copy when you bought the place. Checking GR escalation clauses is something you should do as part of your due diligence in buying a leasehold property.

Irratus_Rusticus

You fetch a form from the land registry website and apply for a copy for I think only £7 - it isn't the leasehold tenure title that you can also download for £3. Check the gumph your conveyancer gave you when you bought as it might be in there. It's a fairly long document with plans. Full of important information you ought to know.

{Wow - three replies while I was typing mine!}

glb

Thank you for your replies. I have looked through some of my paperwork and I don't think I have it - from more searching on google I think it could be with my mortgage lender - is that right?
My solicitor was pretty rubbish it took me 6 months to get back an over payment that occurred when I purchased the flat

Irratus_Rusticus

Mortgage companies did keep copies so they could have the original but it could be cheaper to buy your copy from the LR. Check what the mortgage company charge for copying and postage. Never had to ask so not sure they will even do it.

Pomegranate88

This happened to some blocks where I live...
The lease should state whether the freeholder has to give you notice, what the response period is etc
If they haven't, I believe you can take it to lease tribunal... But case law on this isn't simple and there is no guaranteed win
Your best bet would be to get together with some other leaseholders and take a joint approach
What they did here was dispute the rise based on land registry property data (sold prices on their website, zoopla and right move also have this data)... You can evidence to to show that property values haven't gone up 100% in 10 years. Get a spreadsheet, link to the data etc to evidence your point and state that you don't agree / breaking the terms of the lease if you should have had a consultation period

glb

TrickyDicky101 wrote: »

You must have received a copy when you bought the place. Checking GR escalation clauses is something you should do as part of your due diligence in buying a leasehold property.

That would imply I knew I what I was doing - first time buyer! Thanks though :-)