Freehold property BUT a perpetual yearly rent charge

Mick70

I have never come across this before .
daughter buying and old terrace cottage , the deeds state freehold but it also states that an arrangement dating back to 1875 the land there is a perpetual annual rental chg of £190 ?  She thinks that is spread out across the street .
anybody ever bought similar 
is it still genuinely freehold ??
any concerns ?

many thanks
mick 

princeofpounds

Hi Mick70

This page will answer all your questions:

https://www.gov.uk/guidance/rentcharges

Bottom line is - it's not common but is normal. You can buy out ('redeem') the rentcharge to remove it.

Obviously check all this with the solicitor, but hopefully they will explain it all anyway.

bigkenny1975

This is probably worth reading. An extreme case but better to go in with your eyes open.

https://www.cluttoncox.co.uk/site/blog/conveyancingblog/rentcharge_trap_cost_thousands_bristol.html#:~:text=How Much Does It Cost,16 times the yearly payment.

dimbo61

One for your daughter's solicitor to review.
We had this situation with a terraced house in Manchester and managed to buy it out for 16X the yearly charge which was also the outstanding amount we would have paid till 2033 

nyermen

Bear in mind that rent charges can be bought out, and also all expire in 2037. 
Estate Rent Charges are not exactly the same, and have different conditions.