How Much is your Ground Rent?

Biggie

jillie1974 wrote: »

ours is £10
thats for a mid terrace early 1900's house
and it is due evey christmas eve!!
to buy it out it costs £950 so its not worth it...

may not be worth it from a ground rent perspective..

but having control of the building and not being in the mercy of the landlord (i.e problems stated by OP) also having share of freehold certainly makes it more sellable and can add value.

divadee

Biggie wrote: »

may not be worth it from a ground rent perspective..

but having control of the building and not being in the mercy of the landlord (i.e problems stated by OP) also having share of freehold certainly makes it more sellable and can add value.

i dont think she means to buy the freehold. some freeholders will allow you to pay x amount that covers your ground rent for life.

so basically she would be paying £950 to never pay ground rent again. not worth it at all!!!

Badger_Lady

Woby_Tide wrote: »

you don't buy the place and sign the lease is the best opt out

Yes, but once you have bought it and someone stings you with a massive rent rise (based on the fact that you had no warning at purchase), your only way to opt out is to:

- Sell to someone else who will know about the new high rate;
- Pay conveyancing / marketing costs etc associated with sale;
- Up sticks and move your home.

Not a viable opt-out for most!

flower_72

2 bed terrace: £2.25 per annum Another 890 years to go on the lease...

PasturesNew

I am sure you meant ground rent. And I have no idea as I rent... but I know the service charge on my 15 foot square studio flatlet is £30/month.

A friend of mine living in a condemned block of ex-council flats in North London has a service charge of £130/month.

Woby_Tide

Badger_Lady wrote: »

Yes, but once you have bought it and someone stings you with a massive rent rise (based on the fact that you had no warning at purchase), your only way to opt out is to:

- Sell to someone else who will know about the new high rate;
- Pay conveyancing / marketing costs etc associated with sale;
- Up sticks and move your home.

Not a viable opt-out for most!

if the rise isn't in the lease then you can argue it as unfair quite reasonably as I said earlier. If you signed a lease that contained it then realistically you've not much come back. The majority of leases cover 100's of years, a lot will probably contain 'significant' increases at certain points. £50 in 1982 whilst not worth £1200 now isn't still worth £50 after 25 years.
If you sign a contract with 'penalty clauses' however far in the future you can't then decide you don't like it.

KiKi

I used to pay £75 a year, but £1200 in maintenance for a 1 bed top floor flat in a Victorian house in Sussex.

Are you sure it's purely Ground Rent she's asking you for, rather than maintenance/service?? I used to pay mine all in one bill, although it was itemised out as such.

rjm67

Sadly it is ground rent. We have had some legal advice, and they have said that the wording is very vague, and the method is unique. Guess we'll have to see where we go with it. A word to wise though. Unless you have ground rent that has set values for increases, check your lease very, very carefully. I get the feeling that ground rent is going to become big business for doing sweet FA.

KiKi

Wow, that really sucks mate, I'm so sorry and I hope you manage to get something sorted.

rjm67

Long time since this started, and tonight I've has an email to say that the test case on one of the other flats has awarded the £1200 Ground rent.

A warning to all flat owners, or potential buyers of flats. Make sure your ground rate increases are for fixed amounts. This result will mean we now have to buy out the lease at even more expense or sell up at a loss.