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Found 13 results

  1. Hi I have recently had an offer accepted on a ground floor flat. On review of the lease I noticed that there is a ground rent escalation clause, with the ground rent (set at £250) doubling every 15 years. The building was built in 2015 which is when the lease started. The term of the lease is 125 years. The issue is that I was hoping to buy this on a buy to let mortgage with a 25% deposit. However I understand that lenders are not keen on lending on ground rent escalation properties. Has anyone had to deal with this and what is your experience with the lender? Which lender did yo
  2. I purchased a property through RMP back in 2015 and recently had an “Offer to vary Ground Rent Review Clause” from the Landlord (via their management company). This variation would remove a 10 year ground rent doubling clause and would instead replace it with a clause which increases the amount of ground rent payable in line with the Retail Price Index (RPI) every 10 years for the remainder of the lease term. Essentially for the cost of £795 the landlord (Ishguard Limited) are “prepared to offer a Deed of Variation for the reduced premium relative to the value of the re
  3. Hi, I have seen so many interesting ground rent investments on action, but what are your obligations as the freeholder of the ground? Are you responsible for the insurance and maintenance of the full property? So if the roof or brickework had issues you need to fix/pay for it? All the best. Folkert
  4. So I'm purchasing a leasehold flat in Liverpool and the ground rent is £300. I was unexpectedly notified by my solicitor that because the amount is over £250 (£1,000 in London), then the lease falls within the Housing Act 1988 and will be legally classified as an AST. The term however is 250yrs. My solicitor advised that because of this AST classification, the lease is not CML (Council of Mortgage Lenders) compliant- and 'many high street lenders are not willing to grant mortgages on such leases'. This has gotten me particularly nervous as I'm due to exchange next wee
  5. Hi all I have recently had an offer accepted on a property. The terms of the lease state that the ground rent will increase from £250 per annum from 2017 every 10 years by £250 by a maximum of 5 times to £1500 in 2067. So £250 from 2017 to 2027 £500 from 2027 to 2037 £750 from 2037 to 2047 £1000 to from 2047 2057 £1,250 from 2057 to 2067 £1,500 from 2067 to 2077 RPI thereafter Is this something I should avoid? EA says if it was to double he would avoid but increase of 250 ever
  6. I am currently part exchanging my apartment with a developer in order to buy a house from them. They have stated they require a Deed of Variation to change the lease because of a similar issue. My ground rent is £250pa, which turns the 141 years left on the lease in to an AST lease. So they want me to pay for the change of the lease so that the ground rent falls in line with the 0.1% mark, making it £180pa. I have no idea if the freeholder will accept this, and if they don’t whether the developer will pull out of my PX? Any help would be appreciated! Dan
  7. Hi I would be interested in hearing from anyone who bought a property from Lowena Homes/The New Homes Company in Cornwall in or around 2008/2009/2010 and did so with the help of their ‘help to buy’ type scheme. I would be particularly interested to hear from anyone who has tried to have the additional ground rent in their lease removed and also from anyone who used the solicitors recommended to them by Lowena Homes when they purchased their property. Basically, as I used their help to buy scheme when I purchased my apartment in St Austell, I was loaned my deposit by the developers to
  8. Good afternoon, I am going through the conveyancing process for purchasing a property (to let) in Liverpool. The details of the property are as follows: 1 bedroom. Purpose built flat in a small block. Built in 2017. Currently tenanted for £500pcm. Could realistically achieve £525pcm. ISSUE I have just received the following preliminary advice from my solicitors: Ground Rent- The ground rent is currently £250.00 per annum, and it will be reviewed every 10 years. On the first 5 review dates, the ground rent will be increased b
  9. I invested in a 2 bed flat in Digbeth, Birmingham, which on the whole I'm very happy with, however Seven Capital have just sent me a Section 5A Offer Notice, through their lawyers. The original agreement to sell the freehold has been rescinded, so we as landlords are being given the opportunity to buy the freehold as a legal obligation. I personally have no desire whatsoever to own the freehold at this point, given that it's a hands off investment in a city I don't live in. Even if I did want to buy a share of the freehold, I would have to contact hundreds of other landlords to ask if they wan
  10. 1 month before the development is due for completion, I have just recieved this message from my solicitor. Has anyone any experience in this and should I accept or reject this 10 year rent review provision? “Good Afternoon, We have received notification from the sellers solicitor that their client is proposing a change to the format of the Lease for the XxxX Development. The Seller has proposed that the Rent Review provisions be changed to allow for a rent review on each tenth anniversary of the Lease and any such increase would then be in line with RPI. I
  11. Hello all. Me and my friend end have been in he process of buying a new build and nearly became victims of the recent spate of developers looking to charge £250 ground rent on the leasehold which doubles every 10 years. For anyone unaware of the problem with this have a quick read of this article from the guardian: https://www.google.co.uk/amp/s/amp.theguardian.com/money/2016/nov/05/ground-rent-scandal-engulfing-new-home-buyers-leasehold We have been advised by our solicitors to pull out of the deal but are of course hesitant because it is a great location
  12. Slightly odd situation - I'd be grateful for Hubbers' views: A friend has inherited the freehold to a block of flats which his father built. The leases are all 999 years from the early 1970s and provide for an annual ground rent of £15 per flat. With 24 flats this totals £360 per year. There is no provision in the lease for increasing the ground rent, so as things stand it will just continue at that level. Not sure who manages the block, but it is not something my friend is interested in taking on. He has asked whether there is anyth
  13. Hi, I made my first BTL purchase last year on a 1bed flat that is part of 4 flats in a block. The block is a leasehold with 125yrs remaining. One of the other investors in the block has recently contacted me saying we may all have an issue with one of the clauses stated in the lease. Being new, I'm not sure if this is a problem and would appreciate some experienced advice. The clause appears to be a "doubling of the ground rent every 10years" (the actual wording is incredibly cryptic, but this is my understanding). According to the other investor, this may become a problem f
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