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Leasehold ground rent renewal, what does this mean please
OnePound
Posts: 151 Forumite
Hi, I will be getting some professional advise soon, but doing some initial research first.
I have an informal quote for lease extension, ground rent:
Current: £110 pa (although lease says: from 2029 £220 pa, from 2062 £330 pa)
New proposed: £200pa subject to review every 10 years in accordance with RPI
What does the new proposed mean in practical terms, is it better or worse that current?
Thanks for any help.
I have an informal quote for lease extension, ground rent:
Current: £110 pa (although lease says: from 2029 £220 pa, from 2062 £330 pa)
New proposed: £200pa subject to review every 10 years in accordance with RPI
What does the new proposed mean in practical terms, is it better or worse that current?
Thanks for any help.
0
Comments
-
Depends on inflation, but probably more expensive.
It's probably better to go for a statutory extension - +90yrs, peppercorn ground rent.1 -
Going up with RPI is significantly worse than going up 50% after 33 years.1
-
Tàke Adrian's advice. Always do a formal lease extension which will give you a peppercorn ground rent.
Don't accept RPI increases. Apart from working out expensive could also cause problems in future if selling.1
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