Ground rent caps

28tsw

I’m selling a shared ownership so has to have a leasehold to it unfortunately 

I know ground rent caps are common for lenders. Ours was increased last year to £250.08. If there is a cap of £250, as is common with lenders now, will 8p bring everything to a halt?? I’m so concerned 

davidmcn

Yes, £250 is the statutory limit at which tenancies start being treated as Assured Shorthold Tenancies, so I don't think it makes any difference how little over £250 it is. 

28tsw

Okay I’ve discovered the 8p is because we pay monthly and they round up. The ground rent IS £250. 

Is this a problem? The Head lease says £250 but housing association collect a bit more because of the reoccurring number when you divide 250 by 12.

davidmcn

If the rent actually due is exactly £250 that's ok (I hope you get the 8p back somewhere else!). And the limit is £1000 if you're in London. 

28tsw

I hope so too! Thank you for your replies