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What is the length of my lease?
Scapegoat
Posts: 6 Forumite
I have a copy of the lease of my flat.
In section 2 it reads:
2. In consideration of the price (the receipt whereof is hereby acknowledged) the Company:
a) demises to the Purchaser the Property:-
(i) with the benefit of the rights in the terms specified in the First Schedule; but
(ii) subject to the rights in the terms specified in the Second Schedule; and
b) assigns to the Purchaser the benefit (so far as the same attaches to the Property) of all covenants made with the Company by any other person who is the registered proprietor of any part of the Estate.
TO HOLD the same for the term of 999 years from the first day of January 1980 paying a yearly rent of a peppercorn.
However, later on in the lease, there is a section PERPETUITY
4. The perpetuity Period applicable to this lease is eighty years from the first day of January 1980.
We've lived in the flat for 21 years and now want to sell, however I don't understand which of the above is referred to when people refer to the length of time left on a lease. I understand that the shorter the lease, the less sellable/valuable the property becomes. If it's the Perpetuity which people refer to, then that means that my lease is 80 years minus the 41 years between 1980 and 2021 = 39 years. Meaning my flat is virtually unsellable unless I renew the lease at a cost of many thousands. (which we definitely can't afford).
Please could somebody clarify for me? I'm worried sick.
In section 2 it reads:
2. In consideration of the price (the receipt whereof is hereby acknowledged) the Company:
a) demises to the Purchaser the Property:-
(i) with the benefit of the rights in the terms specified in the First Schedule; but
(ii) subject to the rights in the terms specified in the Second Schedule; and
b) assigns to the Purchaser the benefit (so far as the same attaches to the Property) of all covenants made with the Company by any other person who is the registered proprietor of any part of the Estate.
TO HOLD the same for the term of 999 years from the first day of January 1980 paying a yearly rent of a peppercorn.
However, later on in the lease, there is a section PERPETUITY
4. The perpetuity Period applicable to this lease is eighty years from the first day of January 1980.
We've lived in the flat for 21 years and now want to sell, however I don't understand which of the above is referred to when people refer to the length of time left on a lease. I understand that the shorter the lease, the less sellable/valuable the property becomes. If it's the Perpetuity which people refer to, then that means that my lease is 80 years minus the 41 years between 1980 and 2021 = 39 years. Meaning my flat is virtually unsellable unless I renew the lease at a cost of many thousands. (which we definitely can't afford).
Please could somebody clarify for me? I'm worried sick.
0
Comments
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Sorry I can't help on the perpetuity, but I was just wondering how you pay your yearly rent with a peppercorn?
1 -
No reliance should be placed on the above! Absolutely none, do you hear?1
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Just buy one of these, it should last until you sell the property...kayleighali said:Sorry I can't help on the perpetuity, but I was just wondering how you pay your yearly rent with a peppercorn?
https://www.amazon.co.uk/BLACK-PEPPER-WHOLE-COOKING-SPICES/dp/B00BZ40KIM
1 -
TO HOLD the same for the term of 999 years from the first day of January 1980 paying a yearly rent of a peppercorn.
This is the length of your lease. 999 years from 1st January 1980. So you still have 959 approx years left on it... no need to panic just yet.1 -
Slithery said:
Just buy one of these, it should last until you sell the property...kayleighali said:Sorry I can't help on the perpetuity, but I was just wondering how you pay your yearly rent with a peppercorn?
https://www.amazon.co.uk/BLACK-PEPPER-WHOLE-COOKING-SPICES/dp/B00BZ40KIM
I'd love one of my clients to come in one day and tell me that their landlord demanded an actual peppercorn. I think I would laugh out loud !
(mind you.. imagine how many peppercorns you could collect on a big development each year, there's a side industry here that landlords haven't considered I'm sure!! )0 -
The main reason that they aren't collected is that it costs more to post out the legally required invoice than the cost of a single peppercorn. The freeholder is perfectly within their rights to do so if they wish but it would actually lose them money.Kyresa said:Slithery said:
Just buy one of these, it should last until you sell the property...kayleighali said:Sorry I can't help on the perpetuity, but I was just wondering how you pay your yearly rent with a peppercorn?
https://www.amazon.co.uk/BLACK-PEPPER-WHOLE-COOKING-SPICES/dp/B00BZ40KIM
I'd love one of my clients to come in one day and tell me that their landlord demanded an actual peppercorn. I think I would laugh out loud !
(mind you.. imagine how many peppercorns you could collect on a big development each year, there's a side industry here that landlords haven't considered I'm sure!! )0 -
Just buy a bag of peppercorns at the market and drop them off to your freeholder. Ground rent paid for the full 999 years.
0 -
As a peppercorn is less than 1/10 of a gram, each decade's ground rent would cost less than a penny.Slithery said:
Just buy one of these, it should last until you sell the property...kayleighali said:Sorry I can't help on the perpetuity, but I was just wondering how you pay your yearly rent with a peppercorn?
https://www.amazon.co.uk/BLACK-PEPPER-WHOLE-COOKING-SPICES/dp/B00BZ40KIM
In order for it to be a contract you need to pay something; instead of making it an actual amount of money, often it used to be a almost symbolic item of negligible value, and a peppercorn is one of the least valuable units of exchange imaginable,being even less valuable than a pre-decimal farthing.
I know that grains might be even cheaper but they're likely to e less durable.
There is no honour to be had in not knowing a thing that can be known - Danny Baker0
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