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Purchas of 1 bed flat - Lease 993 with Ground rent £300 RPI review 10 years

ClsNp · 2023-10-12 10:24:18

Hi All, We are in the process of buying a 1 bed flat in Dartford near London that is relatively new, build in 2016. Currently the ground rent is at £300 and the review period is in January 2026 and it is being reviewed by RPI every 10 years at 1st October- 31st September Financial year. We are looking to live in the flat…

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eddddy Posts: 18,034 Forumite

12 October 2023 at 11:13PM
NameUnavailable said:

...BUT most also have their own limits on what GR is acceptable as a % of the value of the property.

Yes - but the value of the property will probably increase roughly in line with RPI.
So if the ground rent starts at, say, 0.1% of the value of the property...
Ground rent will increase with RPI, and the value of the property will increase roughly with RPI...
So the ground rent will continue to be roughly 0.1% of the value of the property
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