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expired, not more needed

[Deleted User]
[Deleted User] Posts: 0 Newbie
10 Posts First Anniversary Name Dropper
edited 7 October 2023 at 8:06PM in House buying, renting & selling
expired, not more needed
«1

Comments

  • user1977
    user1977 Posts: 18,005 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Request1 said:
    how to work out GROUND RENT INCREASE???

    I would be appreciated if someone can help me to work it out.

    leasehold formula for ground rent increase:


    R x A/B
    R = the rent payable for the first rent period 
    A = the most recently published figure for all items index of the RPI 
    B= the index figure last published at the base date

    HOW TO FIND  A and B
    it's impossible to find this data
    How hard did you try? Here it is, took me a few seconds:

    https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/czbh/mm23
  • It does take a few seconds to type unhelpful reply like yours. If it was that easy to find the the owners of the ground would never ripped off money.

    There is no way to find the index figure last published at the base date. Even Stat office does not know what it is. 
  • user1977
    user1977 Posts: 18,005 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Request1 said:
    It does take a few seconds to type unhelpful reply like yours. If it was that easy to find the the owners of the ground would never ripped off money.

    There is no way to find the index figure last published at the base date. Even Stat office does not know what it is. 
    What does the lease define the base date as?
  • There is no definition in the lease... 
  • user1977
    user1977 Posts: 18,005 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Request1 said:
    There is no definition in the lease... 
    That's unhelpful, but it was almost certainly intended to be the start date of the lease.
  • So that B could be the start date of the lease? So B should be 2005?
  • eddddy
    eddddy Posts: 18,062 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 14 July 2022 at 8:47PM
    Request1 said:
    So that B could be the start date of the lease? So B should be 2005?

    You need to be a bit more specific about when in 2005.

    In Jan 2005 - the index was 188.9
    By Dec 2005 - it had increased to 194.1

    However, the index for May 2022 was 337.2

    So using the Jan 2005 figure......    R x A/B would be £150 x 337.2/188.9 = £267.76
    using the Dec 2005 figure......         R x A/B would be £150 x 337.2/194.1 = £260.58


    But
    ... just in case you're confused about this - you don't have to pay the new ground rent amount until you get a bill asking for it.


    However, if your property is outside London, it looks like you'll pass the £250 ground rent threshold - making your lease an 'assured tenancy' under the Housing Act 1988 - which isn't ideal.




    Edit to add...

    This is the link you need, rather than the link posted above:
    https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/chaw/mm23
     

  • Thanks Edddy... 
    Does 'B the index figure last published at the base date' rely mean RPI ALL items index in the year the lease was granted. In this case Jan 2006?


  • eddddy
    eddddy Posts: 18,062 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Request1 said:
    Thanks Edddy... 
    Does 'B the index figure last published at the base date' rely mean RPI ALL items index in the year the lease was granted. In this case Jan 2006?



    The 'index' will be the Retail Price Index (RPI)

    The 'base date' should be specified in the lease - if it's not, multiple people have messed-up (including the solicitor who wrote the lease, and your solicitor for not noticing that it was missing when you bought the property).

    But if you assume that the 'base date' is the grant date of the lease, that's likely to be fairly close.

  • Lease is not messed up, simply edited to to rip off people.
    Your calculation seems to be right and flat is likely to be not mortgable. That's why the calculation is complicatly worded so ppl have no clue. 
    Thats why the vender sent me a copy of the leaae with cut out important issues. 

    The other issue is that the first ground rent increase is 25 years from the year it was grunted with a increase date but there is no info how frequent it could be after first 25 years. So it means it can be as frequent as they want to rip off more

    Thanks eddy 
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