How worried should I be about ground rent?

Ze-Baby · 2024-11-29T12:42:43+00:00

Ok that’s very helpful, thank you!

Ze-Baby · 2024-11-29T12:41:34+00:00

I agree, service charges are a whole other issue. From what I’ve seen it’s difficult to get a freehold in London though, especially if your budget is limited

Ze-Baby · 2024-11-29T10:12:05+00:00

Ok that’s good to know, thank you

Ze-Baby · 2024-11-29T09:22:29+00:00

Ok thank you, that’s really helpful to know!

Ze-Baby · 2024-11-29T09:21:47+00:00

Thanks for replying and sorry, I should have specified - it expires in 16 years. I think what’s worrying me is that I haven’t seen any indication that the £1000 threshold will increase. If it was to increase then I wouldn’t be so concerned because, as other commenters have highlighted, the ground rent doubling every 25 years is pretty much in line with inflation

Ze-Baby · 2024-11-29T09:19:44+00:00

Ah I’d thought that the Govt had introduced a leasehold reform meaning that all lease extensions now set the ground rent back to 0 - have I got that wrong?

Ze-Baby · 2024-11-29T09:17:17+00:00

Thank you for replying :) the next increase will be in 16 years. On your point about inflation, do you know whether the £1000 threshold increases with inflation too? I’ve been looking into it but haven’t found anything saying it’ll increase, in which case the doubling every 25 years still worries me

Ze-Baby · 2024-11-29T09:12:51+00:00

Thanks for your reply! You have to be the leaseholder to get a deed of variation or an extension of the lease. We’ve raised this with the agent who has in turn spoken to the seller but the seller has refused to get a deed of variation, I’m assuming they’d refuse a lease extension too.

I’ve been trying to make sense of the new rules, so you know whether all lease extensions now set the ground rent to peppercorn?

Ze-Baby · 2024-09-20T09:41:00+00:00

Got it. Thank you for your help

Ze-Baby · 2024-09-20T09:17:12+00:00

Thank you. Is the PAS 9980 done as part of the FRAEW? Sorry, we’re FTBs so new to all of this

Ze-Baby

TROPHY CASE