Leasehold

James_R

We have a newbuild (3 years old) it has a £150 ground rent per year with a 999 year lease and ability for its cost to double every 10 years. Is there any likelyhood of this changing under new laws?

Thanks

NameUnavailable

Very unlikely that anything will happen to existing arrangements. You would need to negotiate a variation to your lease to reduce the ground rent (with financial compensation to the freeholder).

James_R

Thank you 

eddddy

James_R said:

We have a newbuild (3 years old) it has a £150 ground rent per year with a 999 year lease and ability for its cost to double every 10 years. Is there any likelyhood of this changing under new laws?

Thanks

Is it a house? If so, you would probably want to buy the freehold to resolve the ground rent issue.  The planned reforms should make it simpler to do this, and the legal fees should be lower (which might save you about £1000 or £2000)

There is also talk of making the actual cost of freeholds lower, but that's a lot less certain.


Or is it a flat? If so, the planned reforms talk about giving you the statutory right to 'buy out' your ground rent. i.e. You pay your freeholder a chunk of money, and in return your ground rent reduces to zero.  (You can do almost that at the moment, by doing a statutory lease extension. But the new route should be a bit cheaper).

James_R

Hi, yes its a house. I guess I would have to buy the freehold hopefully it will become easier as no idea how atm