Peppercorn Leasehold - 25 Year Review

Langerz0101

Apologies, it reads exactly this in the particulars. Clause 7 then refers to "rent" in the particulars as if it's a specific sum. There is nothing else in this section that references rent or a charge. The only numbers in the particualrs is a list of incentives and total cost of property. There is no "Initial Rent" in the particulars.

"Rent"
Peppercorn per annum
subject to review in accordance with clause 7

Not sure if linked to rent but this then reads below.

"Part A Proportion" A fair and reasonable proportion of the Estate Costs (as
defined in the Sixth and Seventh Schedule)
"Part B Proportion" A fair and reasonable proportion of the Block Costs (as
defined in the Sixth and Seventh Schedule)
“Part C Proportion” A fair and reasonable proportion of the Car Park Costs (as
defined in the Sixth and Seventh Schedule)
“Part D Proportion” A fair and reasonable proportion of the Costs applicable
(as defined in the Sixth and Seventh Schedule)

davidmcn

Ok, in that case it's an index-linked peppercorn! Maybe they thought it easier to leave in the rent review clause to make it consistent with leases which have a more significant rent.

Tom99

Sounds like it really is a peppercorn in which case the review clause is pointless, very bad drafting, possibly just a copy and paste from a lease which did have a rent worth reviewing?

Langerz0101

Tom99 wrote: »

Sounds like it really is a peppercorn in which case the review clause is pointless, very bad drafting, possibly just a copy and paste from a lease which did have a rent worth reviewing?

Yes, I would absolutely not be surprsied about this. I should have mentioned before, but this is actually a revised lease, the original was incorrect and included a traditional lease ground rent charge. However this house has always been advertised as not having ground rent, or at least, a peppercorn rent. They then revised and this is what you're seeing above.

Thanks for your help everyone. For me this is now looking good (even if it DID increase every 25 years I was still partialy ok with it). I just wanted to know the increase rate. Thanks!!

P.S/EDIT - The rate in which people respond on this forum is truly amazing...

bouicca21

A-D are the presumably the basis of the service charge. Slightly worrid about how 'fair and reeasonable' is determined.



When you say 'particulars' is that referring to the actual lease or some sort of abstract?

Langerz0101

bouicca21 wrote: »

A-D are the presumably the basis of the service charge. Slightly worrid about how 'fair and reeasonable' is determined.



When you say 'particulars' is that referring to the actual lease or some sort of abstract?

The actual section within the lease named Particulars.