New Ground Rent Law

9aldridges

Hi all,

On the back of the proposed new law allowing leaseholders to extend their lease up to 990 years at zero ground rent, I wondered where it leaves those between 990-999 years remaining?

I appreciate this has not even been passed yet, but wondered if anyone more informed than me, had any inkling as how this 'minority' may (or may not!) be effected?

Cheers,
Steve, Bristol 

eddddy

Presumably, if your lease is already over 990 years it won't affect you.

But once your lease drops to 989 years or less, you can extend it to 990 years (but there probably wouldn't be much benefit in doing that for quite a few years.)


Edit to add...
Not that any current block of flats or house is likely to last for 990 years.

I guess a future challenge will be when blocks of flats become 100+ years old, outdated, expensive to maintain, maybe slum-like, etc.  And some leaseholders want to spend a chunk of money bringing the block up to date, some want to sell the block to developers for demolition, and some want to live in the block as it is - so there is deadlock.

Timbosaurus

I read that those in this situation will still be able to 'buy out' their ground rent to zero it.  We won't know the precise formula for this until more details are published (including, apparently, an online calculator).  I'd be interested to see how much it will work out at, as mine currently rises with RPI, so that complicates things a little.