Ground rent increased by just over 100%

Overabarrel1

A family member lives in supported accommodation flats, many of whom are in their 80's & 90's.

She's paid £350 pa (2x £175 half yearly) ground rent since moving in just over 10yrs ago.

In Feb 25 we got the usual £175 invoice to cover Mar - Aug 25, which was paid. (Invoice stated ground rent due for review in July 2025).

Early April a further letter & invoice to advise and additional £221 to be paid for the same period, as an adjustment. These weren't straightforward to understand, certainly didn't have their 65-100yr old residents in mind!!

I queried it with the Co, as they'd said it was due for review in July 25 but gone up from March 

The Co explained that the ground rent was increased by RPI from the last 23yrs. That the July 25 review date on the previous invoice was a mistake, it should have said March 25.

Now her annual ground rent is now approx £792 p/a.

I take it we have to pay the additional £221?? 🫤 Any advice?

No doubt it's in the lease agreement. Just think it's a massive hike & poorly communicated. 

eddddy

You can double-check the lease to make sure that's what it says.  But if that's what the lease says, your family member is bound by it.

FWIW, RPI is about 2.25 times what it was 23 years ago - and £350 x 2.25 is about £792. So the calculation seems to be correct, if that's what the lease says.


(In simple terms, the argument would be... Those terms were written in the lease 10 years ago when your family member bought the lease. By buying the lease she was agreeing to those terms. If she didn't like those terms, she shouldn't have bought the lease.)

It's bad that the company sent a bill showing the incorrect amount initially, but unfortunately that doesn't mean you can avoid paying the correct amount now.