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MarianC
MarianC, Solicitor
Category: Law
Satisfied Customers: 618
Experience:  Expert
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I want to know for a leasehold apartment, the ground rent is

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I want to know for a leasehold apartment, the ground rent is reviewed by every 5 years better or 10 years double? What’s the average ground rent charge for new build apartment now? Thanks
Morning
I hope you are well.
Doubling ground rent is not a good idea. Especially every 10 years, this is quite extreme. Many mortgage lenders will not lend on a property where the ground rent doubles so is likely to cause a lot of issues especially when it comes to selling the property.
It is difficult to say what the average ground rent it. It differs depending on the size of the flat, location etc.
I hope this helps.
Kind regards
Customer: replied 12 days ago.
Thanks for the response. But 5 years review is still refused by the lender. Due to the ground the ground rent is very high already, and it’s only the based rate, will increase every review. Is £395 annually for 1 bed new build in Salford Manchester very unusual? Thanks

Rent review every 5 years is quite standard. It is usually every 3-5 years so I am unsure why lenders would not accept this.

Also, ground rent of £395 is also quite standard. The typical ground rent for a new build flat is anything up to £400 per annum.

Customer: replied 12 days ago.
Do u think it’s quite standard for reviewing every 5 years? As the base rate is £395 already, that means the price only can go up, is that true? Although they stated on the contract that the review is according to the RPI. But the landlord can put any price on, maybe double, is that correct? By then where we can stand? Thank you.

Yes, rent review every 5 years is quite standard.

The rent can go up and down as it will be in line with RPI but it is likely it will go up.

The landlord cannot put any price on, it must be in line with RPI. If they attempt to put on an unrealistic rent, you can argue it is unreasonable.

Customer: replied 12 days ago.
But even with the argument, it may not solve the problem in the end. If they still apply on unreasonable price, apart from getting a lawyer, is anywhere else we can report to? Or maybe filed the tribunal things like that? Thanks

Yes, you will be able to go to tribunal although you may need a lawyer for this.

You can contact the relevant ombudsman or the lease advisory service who can assist in such situations.

I hope this helps.

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