Question on groundrent...



Simarc Fookas want about 5% of the house value, lease is below 70 years......reasonable?
At 70 years the value should be about 92% of the freehold value.
That's just using a fairly basic relativity graph.
It's more based on London figures but suggests you could be asked to pay 8% minimum and it would increase every year after.
 
Is that to buy the freehold?

If you went down the statutory route you’d probably end up spending 3k on professionals anyway, so accepting the offer seems the best thing to do

Aye......sure a few years after I bought it could have had it for £3k, costs me £120-£150 a year in charges, goes against the grain but If I challenge it these will drag it out and + legal costs....small price to pay in the circumstances and I was expecting it to be much higher....
 
Iirc, the land is/was often owned by the church who then allowed councils & companies to build for a small slice of the profits. Apparently round here most flats are leasehold. Son no 2 is in the process & the estate agents claimed they didn't know the groundrent or how long was remaining. Lying bastards. Luckily lease is 999 yrs & GR is peppercorn. Previous place he looked at the wifey selling referred to leaseholder as 'the landlord' but again claimed not to know how long left.
 
Ours has not changed by a penny in a quarter of a century. We are civilised up here though.

And we do 999 year leases. The house will drop down before the lease expires.
 
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The last house I lived in was leasehold. Lived there 10 years and paid £25 per year ground rent.
When I decided to sell it (4 years ago), it was virtually unsellable due to the lease "only" having 58 years left!!.
Had to buy the lease from from the leaseholders (Chancery St James). I made an offer of £1450 (58x£25) thinking that would be enough...how f***ing wrong was I??
Twelve grand they wanted....12 grand!!
After a few months of negotiating I got it down to £7500...still a hefty sum.
I had no choice to pay it it really, but harsh lesson learned. I wouldn't buy another leasehold.

I'm in the exact same position marra.
 

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