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    • mxscbi
    • By mxscbi 7th Jan 18, 7:52 PM
    • 18Posts
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    mxscbi
    Question regarding 'Ground Rent'
    • #1
    • 7th Jan 18, 7:52 PM
    Question regarding 'Ground Rent' 7th Jan 18 at 7:52 PM
    Hello all, I have some savings (close to £20k) and want to buy my first home, now I want to buy by myself as I don't want to buy with someone else and rely on them, now I do not work a high paid job so I can only borrow £70k, I was planning on buying a 1 bedroom flat for around £60k which should leave me plenty left over to spend/save and give me an idea of living with my partner, do all flats have ground rent etc? this itself can add up to over £200 per month which would then render buying a flat pretty pointless and if I had to buy a house my budget would be £90k which wouldn't buy me anything great and I would have to live in an area I really wouldn't want to, this would force me to get a joint mortgage with my partner and then if something happens I would lose my house.
Page 1
    • eddddy
    • By eddddy 7th Jan 18, 8:20 PM
    • 6,473 Posts
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    eddddy
    • #2
    • 7th Jan 18, 8:20 PM
    • #2
    • 7th Jan 18, 8:20 PM
    Ground rent on a flat shouldn't be anything like £200 per month - more like £200 per year perhaps.

    It's possible that the service charge works out at £200 per month. That's your share of the cost of maintenance/repairs/insurance of the building and grounds.

    To make sure that you do a fair comparison, bear in mind that if you were to buy a freehold house, you would also have to pay the full cost of maintenance/repairs/insurance of the building and grounds (which might work out at a thousand or two per year).
    Last edited by eddddy; 07-01-2018 at 8:22 PM.
    • goodwithsaving
    • By goodwithsaving 7th Jan 18, 8:58 PM
    • 824 Posts
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    goodwithsaving
    • #3
    • 7th Jan 18, 8:58 PM
    • #3
    • 7th Jan 18, 8:58 PM
    Okay first point: please break up your sentences so they are easier to read.

    Back to the question....

    As above, ground rent shouldn't be 200/month. Service charges possibly can be that much. Things to also check for are increases of both service charge and ground rent (they're separate).

    If you do ever buy with somebody and remain unmarried, it is possible to protect assets with a deed of trust.This ensures what is put in by each party is protected. However, it is void if you marry as assets then become shared.
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
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