Barratt homes leasehold scandal

eddddy

28tsw said:

I’ve not had EA come back yet but I have asked would-be neighbours and ground rent is updated every 15 yrs based on rpi - my research seems to indicate that this is an acceptable term for lenders.

Yep - that's usually acceptable to lenders.

Many of the lenders explain what ground rents are acceptable to them here: https://www.cml.org.uk/lenders-handbook/englandandwales/question-list/1852/

Tiglet2

Many lenders consider anything below 20 years to be onerous, so check that 15 years is acceptable to your lender.

eddddy

Tiglet2 said:

Many lenders consider anything below 20 years to be onerous, so check that 15 years is acceptable to your lender.

Are you thinking of doubling ground rents? The OP is talking about RPI increases.

Tiglet2

eddddy said:

Tiglet2 said:

Many lenders consider anything below 20 years to be onerous, so check that 15 years is acceptable to your lender.

Are you thinking of doubling ground rents? The OP is talking about RPI increases.

Yes, apologies, I was thinking of doubling ground rents.

daveyjp

RelievedSheff said:

daveyjp said:

If you are buying the house get a copy of the lease. 

Also be aware that even if you buy the freehold it may not release you from leaseholder obligations to pay charges such as upkeep of common areas shared with other residents.

I think you are confusing two different matters here the leasehold has nothing to do with the completely separate issue of estate management charges.

The two are often confused but are not one and the same.

Not confused at all.  Merely raising the issue with the OP.

 Leasehold ground rent and estate management charges may be tied together.

The OP is currently concerned about ground rent, but there may be other common area charges tied up in the leasehold documentation which they need full disclosure of.

People think by buying the freehold all the payments to management companies disappear, they may not and how this is dealt with once a freehold is secured needs clarification.  Last thing they want as a result of buying the freehold is to end up in an unregulated rent charge situation i.e fleecehold.

RelievedSheff

daveyjp said:

RelievedSheff said:

daveyjp said:

If you are buying the house get a copy of the lease. 

Also be aware that even if you buy the freehold it may not release you from leaseholder obligations to pay charges such as upkeep of common areas shared with other residents.

I think you are confusing two different matters here the leasehold has nothing to do with the completely separate issue of estate management charges.

The two are often confused but are not one and the same.

Not confused at all.  Merely raising the issue with the OP.

 Leasehold ground rent and estate management charges may be tied together.

The OP is currently concerned about ground rent, but there may be other common area charges tied up in the leasehold documentation which they need full disclosure of.

People think by buying the freehold all the payments to management companies disappear, they may not and how this is dealt with once a freehold is secured needs clarification.  Last thing they want as a result of buying the freehold is to end up in an unregulated rent charge situation i.e fleecehold.

Estate management costs are not in any way related to leasehold costs. They are two separate items managed by two separate companies.

The two are not related.