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propertylawyer
propertylawyer, Solicitor
Category: Law
Satisfied Customers: 285
Experience:  Property Solicitor with expertise in commercial and residential property transactions.
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What is a fair ground rent small 2 bedroom ground floor flat

Customer Question

What is a fair ground rent for a small 2 bedroom ground floor flat which I let. When I bought the flat about eight years the ground rent was £25. When I have a change of tenancy the company puts up the ground rent, and they are now asking £454 p.a. Is this a fair figure or are they just ripping me off?
Submitted: 1 year ago.
Category: Law
Expert:  propertylawyer replied 1 year ago.

Hi

Thanks for your question.

If I understand this correctly you own the flat and the ground rent has increased from £25 p.a to £454 p.a.

The lease of the flat will set out how and when the ground rent can increase.

First thing to do is check the lease to make sure the ground rent increase is valid.

If you attach a pdf of the lease in a reply I can check it for you.

I hope this helps you.

Please remember to leave a positive rating so I can achieve credit for helping you.

Kind regards

Customer: replied 1 year ago.
Thank you for your quick response. I am asking the question on behalf of my son who lives in Guildford, and he will have the documents. I will ask him to check the lease, or get someone to do it for him, and get back to you when I know more
Expert:  propertylawyer replied 1 year ago.

If he can scan it as a pdf you can attach it to a message and I can check it for you, no problem.

Expert:  propertylawyer replied 1 year ago.

Hi

Just following up to see if you have found a copy of the lease? You can buy a copy for less than 10 pounds at the land registry. You can sign up to the land registry website and download a pdf.

Expert:  propertylawyer replied 1 year ago.

Hi there

Just wanted to mention a lease extension to you. You will qualify as you have owned for in excess of 2 years.

Now this is necessary when the unexpired residue of the term gets to around 85 years. Lenders then start to take an adverse perspective which could mean that buyers cannot get finance. Get to 80 years and the marriage value becomes applicable increasing the cost.

Why is this relevant to a ground rent question? Well under the statutory framework for extensions you get an additional 90 years at a peppercorn rent. Peppercorn is effectively zero.

You can work out the potential premium by using the calculator on lease-advice.org

Expert:  propertylawyer replied 1 year ago.

Hi. Do you still need help?

Expert:  propertylawyer replied 1 year ago.

Hi

Do you still need help? Happy to email or discuss on the phone. Just let me know.

Kind regards