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Ground rent bombshell at 11th hour
Comments
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I never understand these ground rent clauses whereby the rent escalates to unmanageable levels, mostly because everyone who has an interest will likely be dead before it actually happens
The future ground rent is an asset that can be sold - you don't need to actually collect it yourself to make money from the leaseholder's obligation. The developers of leasehold houses have been selling the freeholds as soon as each estate is finished.Note: Unless otherwise stated, my property related posts refer to England & Wales. Please make sure you state if you are discussing Scotland or elsewhere as laws differ.0 -
It may not be his decision to make - I really think the property is likely to be unmortgagable.
He needs to call up his lender and ask if they know about the ground rent.0 -
I never understand these ground rent clauses whereby the rent escalates to unmanageable levels, mostly because everyone who has an interest will likely be dead before it actually happens
100% wrong!
You need to read up on "Discounted Cashflow Analysis" i.e. commitments in the future absolutely affect the price of an asset TODAY!0 -
UPDATE
Okay so the developer and leaseholder is Taylor Wimpey. My friend has researched this (google) and there is is a scheme offered for buyers who have purchased from THE FIRST BUYER i.e. from Taylor Wimpey where you can change to a RPI linked contract - okay not great but better for re-sale. Pity the solicitor couldn't have done this ground work. And why don't Taylor Wimpey as a major developer make this scheme more visible to all buyers?0 -
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UPDATE
Okay so the developer and leaseholder is Taylor Wimpey. My friend has researched this (google) and there is is a scheme offered for buyers who have purchased from THE FIRST BUYER i.e. from Taylor Wimpey where you can change to a RPI linked contract - okay not great but better for re-sale. Pity the solicitor couldn't have done this ground work. And why don't Taylor Wimpey as a major developer make this scheme more visible to all buyers?
Not something you communicate to the vendor.0 -
Okay, so he has got the vendor to fill in the necessary form to change the ground rent to RPI linked, this process may take weeks ( if solicitor had made him aware 6 weeks ago, this would have been sorted by now).
He really hopes this goes through as loves the flat and I guess vendor needs this to work as well. As solicitor has been so latent in this I think he should not pay the full fee as he has done a lot of the legwork to make this work (if it ever does). So, question is, can he do this and what is a likely outcome?0
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