Ground rent doubling every 15 years - Need advice

TrickyDicky101

Snowman12345 wrote: »

Has anyone ever come across a case of the clause being removed by the management company through a solicitor?

Or is it wishful thinking?

Thanks

It is down to the freeholder and not the management company. Why would the freeholder voluntarily give away money (value)? They wouldn't.

TrickyDicky101

Snowman12345 wrote: »

Yeah that is how I feel. It's been on the market for 6 months with a 10% price drop. Its priced very well for the area and style. Obviously this is a major issue for buyers.

I have my heart set on the flat with a promise from the EA this should go through, they feel fairly confident.

It is probably fair to say that I should keep looking elsewhere

EA DOES NOT WORK FOR YOU!

They will spout any old bullsh*t to get you to buy. Don't believe a word they say.

Bossypants

Snowman12345 wrote: »

Has anyone ever come across a case of the clause being removed by the management company through a solicitor?

Or is it wishful thinking?

Thanks

Even if they do agree, be aware that anything to do with the lease is likely to take many months. When I experienced something similar, the seller and the freeholder were both fully in agreement in principle, but sorting out the details and getting the legals done still took eight months.

tom9980

Didn't someone post recently here or on the mortgage forum that the lender didn't like a doubling clause that was every 20 years a month or two ago? The wouldn't touch doubling clauses and wanted inflation linked clauses only.

Tom99

[FONT=Verdana, sans-serif]Is it a flat? Has the seller owned it for 2 years?[/FONT]
[FONT=Verdana, sans-serif]If so they can use the statutory lease extension process to buy out the ground rent and extend the lease by 90 years.[/FONT]
[FONT=Verdana, sans-serif]That will take some time, maybe at least 6 mths.[/FONT]
[FONT=Verdana, sans-serif]However they could server the Section 42 notice and assign it to you now. You then take over the lease extension at your cost.[/FONT]
[FONT=Verdana, sans-serif]In terms of the cost of extending lease and reducing the ground rent to £0, if the ground rent was fixed at £600pa that might be c £10,000, but since it doubles every 15 yrs and will reach £76,800pa in 108 yrs time, if the lease lasts that long, the buyout price might be £20,000+. Add in both sides legal costs and the value of the reversion might take it to c £25,000[/FONT]

AnotherJoe

Snowman12345 wrote: »

Has anyone ever come across a case of the clause being removed by the management company through a solicitor?

Or is it wishful thinking?

Thanks

The latter. Very wishful.