Deed of Variation for Ground Rent

Lily2013

Hi, complete newbie here!! 

We are currently selling our house. We are in a chain of three houses-
ours being the top. Our house and the next are ready to exchange but we are being really held up by a flat at the bottom. From what we can establish they need to get a deed of variation as the ground rent is doubling every 40 years. It’s currently with the management company. Does anyone know a time frame/the process involved with this, if it’s with the management company is that near the end of the process? This was first mentioned at the end of August so we are hoping so!! I’ve found some really useful info on here already which has helped so much already! 

Many thanks 

eddddy

Ground rent that doubles every 40 years isn't usually a problem - but assuming a Deed of Variation is being requested, it's really impossible to guess how long that will take. It could be a week, a month, a year or it might never happen.


In simple terms, the process is like this:

• The flat owner says to their freeholder / landlord something like this: "When I bought the flat, I signed an agreement promising to pay you ground rent of £x, which will double every 40(?) years... but now I've changed my mind. I want to pay less ground rent than I promised originally"

• The freeholder / landlord might say "No" or might ignore the request, or might say "only if you pay me a chunk of money".

• The chunk of money might be a silly amount (it usually is if it's the first offer) - in which case the flat owner will try to negotiate it down.

Hopefully, they will eventually reach an agreement on a price, and the Deed of Variation can be drawn up.


Unfortunately, saying "it's with the management company" doesn't really tell you anything. That might just mean the flat owner has sent an initial email to the management company saying "I'd like to reduce my ground rent, please". 

(The management company is probably the freeholder's /landlord's representative.)


Ideally, you need to find out more information - like has a price and terms been agreed for the Deed of Variation? If so, it's then just a case of waiting for the solicitors to draft and agree the deed.

Lily2013

Thank you so much for your reply! I will find out more. This makes so much sense 👍🏻