Bought a flat with doubling ground rent every 10 years

DumbMuscle

Guest101 wrote: »

Well you'd pay it for now, eventually you would use the right to manage, along with other leaseholders, to set your own rates.


But consider this, the cost is set for £150 a year for ten years, but the actual cost will rise.


After ten years it is set to £300, which is probably the correct rate and again stays that way for ten years.


Would it be any different if the cost increased year on year, so the increase was smaller, but the total was the same?

If it increased year on year it would be about 7% per year - which is clearly much higher than inflation! The doubling isn't the issue per se - the doubling every 10 years rather than a more reasonable period is the issue. (FWIW, the RPI was about half it's present value - corresponding to prices being half as much - in 1991. So 26 years ago. Though admittedly RPI won't be directly reflective of ground rent costs)

Experting

Guest101 wrote: »

True, to be honest I thought it was an inclusive charge of both, if not apologies

I also have to pay service charge on top of this!

Pete7 wrote: »

Surely it's £2400 in year 49 and stops at that if the lease says "up to 50 years". Then remains at £2400 for the remainder of the lease, although in 36 years the marriage value comes into play when the lease drops below 80 years remaining so ought to be renewed or extended by then.

0 -10 years = £150
10-20 years= £300
20-30 years= £600
30-40 years= £1200
40-50 years= £2400

Might be expensive to renew the lease if they can add the value of the doubling charge into the renewal.

What can you do about it, not much, sorry.

Pete

Reading the terms in the lease It will also double the £2400 which will end up being £4800 every year just in ground rent for the flat. But arghh so I can't really do anything about it then?

DumbMuscle wrote: »

If it increased year on year it would be about 7% per year - which is clearly much higher than inflation! The doubling isn't the issue per se - the doubling every 10 years rather than a more reasonable period is the issue. (FWIW, the RPI was about half it's present value - corresponding to prices being half as much - in 1991. So 26 years ago. Though admittedly RPI won't be directly reflective of ground rent costs)

Thats the problem i am facing, as i wasn't aware of the clause as a first time buyer i didn't really know what to look for and I left it to the solicitor (my bad i know) it was just by chance that i see a news article on it and thought i better check

davidmcn wrote: »

You may have a case. How long ago did you buy? What did the solicitor tell you about the title?

She didn't, i probably wouldn't have continued with the purchase of the flat if i knew that the ground rent would double every 10 years up to the 50th year. Its not even highlighted by her where as some of the other stuff in the contract is

But I guess Taylor Wimpey have noticed they have a potential problem with the clause in the lease by doing this; https://www.taylorwimpey.co.uk/leaseholdfaq but they won't help as I didn't buy directly from them :mad::mad:

Prairie

Experting wrote: »

HI All,

I have recently bought a flat which is around 9 years old (1st time buyer) not aware of what really to look for and the solicitor did not point this out to me. I have come across a news article about the doubling of ground rent every 10 years up to 50 years. There is currently 116 years left on the lease

Upon checking my lease contract it does state that the ground rent will double every 10 years up to a max of 50 years. It currently at £150 a year so It could end up going up to to some crazy amount after 50 years. I have not bought it directly from Taylor Wimpey (They built the flats) as the flat had been sold to someone and i purchased it from them.

What the hell am i suppose to do now? How can i avoid the doubling of ground rent every 10 years clause? I am also a little annoyed the solicitor did not point this out to me.

Try joining the national leasehold campaign Facebook group. They have people on there with similar situations and they may be able to advise.

PasturesNew

At £150/year now I'd really NOT worry at all.

What's that.... £300/year in 10 years. £600/year in 20 years. £1200/year in 30 years.

Even if you're still living there, by then you'll most likely be earning more - and these sums will seem laughable to you when you look back and wonder "whatever was I worried about??"

Yes there's a lot of hoo-hah about this at the moment - but you can bet your bottom dollar that many of the other people have much bigger sums causing them grief....