£250+ ground rent AST threshold

ikanoi

Comms69 said:

ikanoi said:

NameUnavailable said:

I don't think that there's anything in the proposed leasehold law changes to tackle this isssue for existing leaseholds.

The issue is not the cost of the ground rent (as some people seem to be fixated on) it's more to do with becoming an AST and losing certain legal rights, but mostly, the saleablility of the flat - if you get a mortgage today a future buyer may not (when the GR exceeds £250 EVEN IF IT'S RPI LINKED).

It's a big problem but some people don't think anything's a problem until it actually affects them.

Yes, this is my issue. Despite what people parrot here, flats do work for some people and I'm more than happy to pay the service charges that go along with living in a building with communal areas but having to negotiate to simply hold on to their legal rights is something that no property purchaser should have to deal with.

So dont buy it.... they are offering A, you want B, so go find B. Dont expect it to change to A.

Thanks, heard you the first time.

Comms69

ikanoi said:

Comms69 said:

ikanoi said:

NameUnavailable said:

I don't think that there's anything in the proposed leasehold law changes to tackle this isssue for existing leaseholds.

The issue is not the cost of the ground rent (as some people seem to be fixated on) it's more to do with becoming an AST and losing certain legal rights, but mostly, the saleablility of the flat - if you get a mortgage today a future buyer may not (when the GR exceeds £250 EVEN IF IT'S RPI LINKED).

It's a big problem but some people don't think anything's a problem until it actually affects them.

Yes, this is my issue. Despite what people parrot here, flats do work for some people and I'm more than happy to pay the service charges that go along with living in a building with communal areas but having to negotiate to simply hold on to their legal rights is something that no property purchaser should have to deal with.

So dont buy it.... they are offering A, you want B, so go find B. Dont expect it to change to A.

Thanks, heard you the first time.

I wasnt sure, because you kept going on about leaseholds and ASTs; and how unfair it all is.

It's not. 

ikanoi

Comms69 said:

ikanoi said:

Comms69 said:

ikanoi said:

NameUnavailable said:

I don't think that there's anything in the proposed leasehold law changes to tackle this isssue for existing leaseholds.

The issue is not the cost of the ground rent (as some people seem to be fixated on) it's more to do with becoming an AST and losing certain legal rights, but mostly, the saleablility of the flat - if you get a mortgage today a future buyer may not (when the GR exceeds £250 EVEN IF IT'S RPI LINKED).

It's a big problem but some people don't think anything's a problem until it actually affects them.

Yes, this is my issue. Despite what people parrot here, flats do work for some people and I'm more than happy to pay the service charges that go along with living in a building with communal areas but having to negotiate to simply hold on to their legal rights is something that no property purchaser should have to deal with.

So dont buy it.... they are offering A, you want B, so go find B. Dont expect it to change to A.

Thanks, heard you the first time.

I wasnt sure, because you kept going on about leaseholds and ASTs; and how unfair it all is.

It's not. 

The CMA disagrees with you, but I'm sure you know better than them considering how clever you are!

ChloeManoey

In all honesty, it may not be yourrrrr choice whether to buy or not. Even if you accept those terms, the lender may not, and that will put a stop to your purchase anyway. Some lenders will accept an indemnity policy to protect them, some will want the lease changed and the ground rent capped at £250pa. 

I've recently had this issue with Santander, they wanted a deed of variation for the lease to cap the ground rent at £250pa. 

Comms69

ikanoi said:

Comms69 said:

ikanoi said:

Comms69 said:

ikanoi said:

NameUnavailable said:

I don't think that there's anything in the proposed leasehold law changes to tackle this isssue for existing leaseholds.

The issue is not the cost of the ground rent (as some people seem to be fixated on) it's more to do with becoming an AST and losing certain legal rights, but mostly, the saleablility of the flat - if you get a mortgage today a future buyer may not (when the GR exceeds £250 EVEN IF IT'S RPI LINKED).

It's a big problem but some people don't think anything's a problem until it actually affects them.

Yes, this is my issue. Despite what people parrot here, flats do work for some people and I'm more than happy to pay the service charges that go along with living in a building with communal areas but having to negotiate to simply hold on to their legal rights is something that no property purchaser should have to deal with.

So dont buy it.... they are offering A, you want B, so go find B. Dont expect it to change to A.

Thanks, heard you the first time.

I wasnt sure, because you kept going on about leaseholds and ASTs; and how unfair it all is.

It's not. 

The CMA disagrees with you, but I'm sure you know better than them considering how clever you are!

Know better in what sense? I disagree with the state intervening full stop. That's an opinion. Much like it's an opinion that no-one should be dictated to in how they sell on their assets. 

ikanoi

ChloeManoey said:

In all honesty, it may not be yourrrrr choice whether to buy or not. Even if you accept those terms, the lender may not, and that will put a stop to your purchase anyway. Some lenders will accept an indemnity policy to protect them, some will want the lease changed and the ground rent capped at £250pa. 

I've recently had this issue with Santander, they wanted a deed of variation for the lease to cap the ground rent at £250pa. 

Good point, thanks for sharing your experience. I defintiely need to check in with my mortgage broker.