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Ground Rent

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Ground Rent

Postby Nick T » Thu Feb 21, 2013 8:52 pm

Has anyone any experience in buying their ground rent? I have approached the company I pay it to, but they are nothing short of pig ignorant. I believe from heresay that it is my right to purchase the ground rent, but I need to put something quite forcefull in a letter. Any ideas :?
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Re: Ground Rent

Postby Fenrir » Thu Feb 21, 2013 10:47 pm

Is it a flat or house?

What I think you are describing is known as Enfranchisement, have a good look at this website.

http://www.lease-advice.org/

Residential is not really my sphere of expertise But this is a fabulous resource for anybody who lives in either long leasehold flats or houses. I would recommend that you take some professional advice as it can be a complex area ideally from either a lawyer or surveyor with expertise in the field. There are some firms listed on this tab who might be able to help but talk to the Leasehold Advisory Service first as they will point you in the right direction.

http://www.lease-advice.org/information/advisors/
For the avoidance of doubt, there is no such thing as "American English". There is the English language and there are mistakes.
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Re: Ground Rent

Postby Judge Ali » Fri Feb 22, 2013 1:02 am

I recently asked the freeholder of the block I live in (we are good friends) and he said its usually sold between 12 and 15 times the annual charge if you want the freehold. There are other factors which influence this but dont ask me what.

As far as forcefully obtaining it I think you are probably in for a bit of a battle there if the freeholder doesnt want to give it up. Dont think you can force a sale.

We did group together and get our management company kicked out successfully (I live in a converted hotel which is now 5 seperate flats) and I now manage the property myself. Have saved thousands this way - all thats really needed is general upkeep, make sure the freeholder gets his ground rent and keep the insurance up to date. We split all bills 5 ways and have a much easier and cheaper life without them!

good luck
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Re: Ground Rent

Postby Nick T » Fri Feb 22, 2013 3:48 am

It's a house. The yearly rent is £15.00. The reason I wish to buy is that I would like to build a garage and would need permission off the ground rent owner. I believe that if I were to build, the "agent/surveyor" could increase the rent and could keep increasing it every 3 years. £15.00 a year then suddenly becomes a good investment for them.

Thanks for the info-looks like it's going to be a long night :thup:
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Re: Ground Rent

Postby Fenrir » Fri Feb 22, 2013 9:55 am

A bit more basic advice here and here.
For the avoidance of doubt, there is no such thing as "American English". There is the English language and there are mistakes.
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Re: Ground Rent

Postby Jatinderdhanoa » Fri Feb 19, 2021 1:59 pm

It is not calculated; it is agreed between the freeholder and first buyer of a property and is then stated in the lease and will apply for the duration of the lease and so any subsequent purchasers will have to abide by the rents stated in the lease. However, once a lease is extended a new agreement is reached between the freeholder and the current leaseholder for the rent going forward. If the lease is extended in a statutory manner then the ground rent is reduced to a peppercorn (which is effective £1) per year. Read more[https://www.leaseholdvaluations.com/]...
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Re: Ground Rent

Postby Keef » Sat Feb 20, 2021 12:23 pm

I suspect that as the original question was posed some seven years ago the matter will have been resolved by now.

Don't take this as a criticism, input is always appreciated as someone else my have a similar query.
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