Ground rent over £250

W0rryW4rt

Hi all

I have now had two attempted sales of my flat fall through as a result of the ground rent being over £250 a year (outside London). The freeholder refused a deed of variation for the most recent purchaser. What are my options here? Is it worth just continuing in the hope that someone makes it through to the end without this issue or would it be worth the cost of pursuing a compulsory lease extension to make this a non issue? Can the freeholder refuse to accept the lease extension?

TIA for any advice you are able to give to a very frustrated flat owner (who just really wants a garden!)

eddddy

Assuming you and your flat qualifies for a Statutory Lease Extension, your freeholder cannot block it.

There's some info here on qualification (Section 2.1) https://www.lease-advice.org/advice-guide/lease-extension-getting-started/

NameUnavailable

Your options are a formal lease extension or to sell to a cash buyer (probably at a lower price or via auction).

The leasehold reform bill was passed yesterday so it should be easier/cheaper to extend once it's finally made law.

W0rryW4rt

Thanks both. Good to hear something has finally passed in parliament. 

Do you think there is any chance at all I could get to completion without doing either of those things? Can it work with indemnity insurance?

RHemmings

NameUnavailable said:

Your options are a formal lease extension or to sell to a cash buyer (probably at a lower price or via auction).

The leasehold reform bill was passed yesterday so it should be easier/cheaper to extend once it's finally made law.

This is good news. According to the following (government) link, the bill became law on the 24th of May. As of the time I am writing: yesterday. 

https://www.gov.uk/government/news/leasehold-reforms-become-law

EDIT: Wait, according to this link it isn't yet 'in effect' and 'we don't know when it will be'. https://homehold.org/standard-article/leasehold-reform/  Guesstimate, according to this link, of 2025-6. 

EDIT2: Having done some further research, this quote from the previous link describes the situation well, I believe. 

Just because the Leasehold and Freehold Reform Act 2024 has achieved Royal Assent doesn't mean it is actually in effect.

The legislation simply states "The other provisions of this Act come into force on such day or days as the Secretary of State may by regulations appoint"

Note that I am definitely NOT an expert on leasehold. I was interested in changes to leasehold law as if I buy my son a property, he currently wants London and that means small flat unless I'm going to give him ALL my money. Leasehold is something Returning to the OP's situation, I'm sorry if the act being passed, but seemingly on the never never to come into effect, is frustrating. I would be frustrated if I was in your position.

W0rryW4rt

It is very frustrating. I believe this has been on the tables for law changes for a long time now and nothing appears to be happening. I can only hope that a change in government could possibly speed things up (though I fear it is just as likely to slow it down!).

NameUnavailable

W0rryW4rt said:

Thanks both. Good to hear something has finally passed in parliament. 

Do you think there is any chance at all I could get to completion without doing either of those things? Can it work with indemnity insurance?

You can get indemnity insurance but clearly your last two buyers weren't interested in that idea, and many mortgage co's won't accept it as it still makes the lease more difficult to sell on again.