Ground Rent Apportionment

Lu_equi

Hello , some advice please.
I have our completion statement come through which shows ground rent apportionment at a sum of £725.

I have read things through so much now that I have completely confused myself .

Could someone please explain this figure to me what is it exactly that I am paying the lease states ground rents 150 a year ?. Sorry if vague . FTB Let me know if you need anymore info.

TIA Lucy

G_M

Is that on the debit side? It's being added to the purchase price?

It seems a lot, and if the lease says ground rent is £150 a year one can only assume the sellers have not been paying for some years. But in that case it would be on the credit side ie a reduction to the purchase price as you'd be taking on that debt.

Have you asked your conveyancer to explain?

saajan_12

Ask your conveyancer, but a few possiblilities:

1. When did the leasehold start? Could it be £150 for the first X years, and then double for X years etc so it's now greater than £725? The vendors could have paid that years ground rent and (as standard) are asking you to pay them back for the portion of the year that you will own the place.

2. Are there any services / maintenance charges (e.g. for insurance, hallways in flats, gardens, porters, etc)? Perhaps the 'ground rent' should read 'service charge' and you are paying the vendor back for the portion of the year you will own the property.

3. Could this be several years of unpaid ground rents which is being deducted from the property sale price not added to it?