Peppercorn Leasehold - 25 Year Review

Langerz0101

Hey everyone,

Looking to buy a new home soon and came across a Coach House with a Peppercorn 999 year Lease that has a review every 25 years.

Now to me, as far as a leasehold goes, this sounds ok. The only question I had, was usually after a yearly review the Ground Rent would double, but what happens during a Peppercorn Review? Do they produce a non-Peppercorn Ground Rent charge? Or does the low Peppercorn charge continue?

Obviously I'll consult a solicitor on this, but I was wondering if anyone here had any experience or input on the matter.

Thanks all!

bouicca21

Read the lease. What does it say about calculating any increase?

eddddy

As bouicca says, if the lease says the ground rent will be reviewed every 25 years, it will almost certainly explain how the ground rent increase will be calculated.

If it didn't, the property probably wouldn't be mortgageable (and probably be unsaleable).

Tom99

It could be two peppercorns after 25yrs.
Seriously though if there is a review of the ground rent its unlikely to be a peppercorn rent.
Some people refer to a very low £ ground rent as a peppercorn.

davidmcn

Never heard of it before. Tell us what the clause says and we'll tell you what it means. Otherwise we're all just guessing.

Langerz0101

Thanks everyone, here's the section from the lease. From what I can see the lease doesn't ever mention a specific sum for the peppercorn, big or small.

Full transcript in image linked below.

h ttps://imgur.com/a/OX1guI7

kirtondm

You need to dig out the intital rent from the particulars.

bouicca21

So effectively it's tied to RPI, unless RPI reflects deflation instead of inflation, in which case it's static. At least I think that is what it means.



What does it start at? It clearly isn't a true peppercorn ...

davidmcn

As above - the index-linking is fine in principle, but I very much doubt it's starting at a peppercorn.

Langerz0101

Ok thanks all. I've reached out further as there simply is not an initial fee listed in the lease. In the area that it shoudl be listed it just reads "peppercorn lease."

Tom99

Langerz0101 wrote: »

Ok thanks all. I've reached out further as there simply is not an initial[STRIKE] fee[/STRIKE] rent listed in the lease. In the area that it should be listed it just reads "peppercorn lease."

What is the 'Initial Rent' referred to in the particulars?
Post a copy of the part which refers to 'peppercorn lease' that's a very odd expression to find in a lease.