We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Can a freeholder increase ground rents?
skillboy88
Posts: 22 Forumite
I own a freehold building containing 5 flats. Each flat was sold years ago with a 999 year lease. The lease states that the annual ground rent payable (to the freeholder) per
flat is £25 per year. This figure has stayed the same for over 40 years. The lease says nothing about if this ground rent can be increased.
£25 per year per flat seems very low and I would like to increase it gradually over time. Am I able to do this given that the lease says nothing about increasing the ground rent? On the other hand the lease doesn't say anything about NOT being able to increase it either.
Thoughts?
flat is £25 per year. This figure has stayed the same for over 40 years. The lease says nothing about if this ground rent can be increased.
£25 per year per flat seems very low and I would like to increase it gradually over time. Am I able to do this given that the lease says nothing about increasing the ground rent? On the other hand the lease doesn't say anything about NOT being able to increase it either.
Thoughts?
0
Comments
-
No. The prices paid for the flats (and/or whatever you paid for the freehold) reflects the terms of the leases. Which are that the rent is £25 until the end of the term.
3 -
skillboy88 said:.... The lease states that the annual ground rent payable (to the freeholder) per
flat is £25 per year. ........The lease says nothing about if this ground rent can be increased.Then that is what the ground rent is.At the end of the lease you can, of course, issue new leases at a higher ground rent.1 -
Thanks for the info.
0 -
I'm not sure that's a great comfort to the current freeholder, with 950 years to go on the leases.greatcrested said:At the end of the lease you can, of course, issue new leases at a higher ground rent.2 -
I think that was the dry humour in the reply.AdrianC said:
I'm not sure that's a great comfort to the current freeholder, with 950 years to go on the leases.greatcrested said:At the end of the lease you can, of course, issue new leases at a higher ground rent.
And of course, the leases will 'never' end, given the statutory right to extension for zero ground rent.3 -
skillboy88 said:I own a freehold building containing 5 flats. Each flat was sold years ago with a 999 year lease. The lease states that the annual ground rent payable (to the freeholder) per
flat is £25 per year. This figure has stayed the same for over 40 years. The lease says nothing about if this ground rent can be increased.
£25 per year per flat seems very low and I would like to increase it gradually over time. Am I able to do this given that the lease says nothing about increasing the ground rent? On the other hand the lease doesn't say anything about NOT being able to increase it either.
Thoughts?The lease states everything that you CAN do and SHOULD do as a freeholder. If it doesn't say something then no you can't do it. You sound like an inexperienced freeholder and need to be careful about what you do or say to your leaseholders as you might find that you break the law and some aspects are liable to criminal charges.Maybe you should consider selling the freehold to the leaseholders instead?
1 -
If I cannot increase the ground rent then I'll just leave it per what the lease states. I'll be long gone before they expire!0
-
skillboy88 said:If I cannot increase the ground rent then I'll just leave it per what the lease states. I'll be long gone before they expire!You have to leave it as the lease states, that's the purpose of the lease!Why don't you consider selling the freehold to the leaseholders if you want some extra cash?0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards