Shared Ownership Leases & GR

Geo1122

Apologies if this is a daft question….
In a purpose built shared ownership block of flats would it be expected that all of the leases are the same? 

Would it also be expected that the Ground Rents are the same (don’t know if that depends on the %owned) and that this is paid to the same company by all residents in each property?

eddddy

When you say "the same", what aspects of the lease are you thinking of?

• In simple terms, your lease probably says that all other leases have the same covenants. i.e. You all have to follow the same set of rules.

• Typically, freeholders would set all the leases to expire on the same date - because that's more convenient for them. (But there's no law/rule that says that must be the case)

Regarding ground rent

• Leases granted since 2022 must have zero ground rent.

• If your leases were granted before that they might have the same or different ground rents. Ground rent is more likely to vary with the size of flat - a small flat paying a lower ground rent, and a large flat paying a high ground rent.

• Ground rent wouldn't vary based on percentage owned.

• All the shared ownership flats almost certainly pay ground rent to the same company (probably the owner of a head lease)

• It's likely that owners of non shared ownership flats pay ground rent to a different company. (probably the owner of the freehold)

Geo1122

Thanks for the detailed information Edddy…..

the reason I have queried leases is that my sale fell through due to buyer wanting a DofV on one of the clauses to the lease in order for mortgage to be approved. 

It’s a SO property and this DofV needs to be signed of by Homes England as they are party to the lease. That is a never ending process, which resulted in me losing my buyer.
The issue isn’t apparent with any of the other flats changing hands.
(I have just been made aware that all
leases are available on Land Registry and so
will look into this further but I am
pretty sure from other discrepancies that my lease is different to the others)

This wasn’t queried when I bought the property by my solicitor and I had no mortgage.

Re Ground Rent 
The properties are all pre 2022 (built approx 15 years ago) and all identical in size. 
All SO but different percentages.

My GR was originally paid to one company representing Freeholder and when the company was sold to a new HA I presumed that they were collecting the GR as part of the monthly fee. When I tried to get paperwork for my sale they told me that they didn’t collect the GR. Much digging later they eventually said that  that they did but have only started collecting it this year. They haven't made a demand to me and say they can’t show me by paperwork as it is a bulk bill. The GR they told me is only £21 (it used to be approx £200 a few years back when I had receipts from the old company. 

 My neighbours recently sold and there GR was £300ish for a 45% share (I have a 50%share). These neighbours GR are being paid to the Management Company. 

The Management company have told me that I pay to the Freeholder, who are represented by the SO company.

Overall it just seems very muddled for my property but not identical flats in my block.

(This is with one of the main SO providers.)

eddddy

I'm not sure where you are trying to get to with your questions...


Regarding the ground rent... your lease will say what ground rent is payable. 

Why are you mentioning ground rent? Has somebody said that the level of ground rent is an issue?



Regarding the deed of variation... Presumably you agree that Homes England is a party to your lease, or are you disputing that?

When your solicitor asked Homes England to sign a Deed of Variation, did they respond? If so, what was their response?

(From your previous post, I can see that the buyer's solicitor's opinion was that a Deed of Variation was required, but your solicitor's opinion was that it was not required.)

awfulmemory

You should not be paying ground rent. No one should. It is a non service tax.i. It was abolished on new build post 2022. If it is the housing association land, rather the head lease, then i understand when extending the lease, the g r goes. I would turn down a property with g r of 300. Apart from paying for sod all, it sounds like a rising g r. Every 10 to 30 years increase/doubling. Dreadful.