Is ground rent doubling every 25 years?
Is ground rent doubling every 25 years?
The freeholder will put forward a low premium to extend the lease of the property, however they will do so in an informal offer and then include a new ground rent clause so that ground rent doubles every 25 years and as such they will recoup on the lower lease premium with more ground rent over time.
How long does ground rent last?
Ground rent is usually paid every six months in May and November.
Can ground rent be changed?
The landlord cannot insist that you pay more than the rent set out in the lease or change the provisions in relation to ground rent. The ground rent can be fixed in the lease or increase at fixed times and amounts. Or it may increase in accordance with a formula such as a percentage of the rental value of the property.
How far back can I claim ground rent?
She also outlined the proper format for ground rent demands, and explained: “Under the Limitation Act 1980 the limitation period for recovery of ground rent is 6 years. This means that your landlord can only seek to recover ground rent going back 6 years.”
Is Doubling ground rent an issue?
If you purchase a new build house or flat you may find that you are now faced with doubling ground rents. This can be a real problem for you not only because your ground rent will double but it can create an issue when you want to sell your property.
How do I recover my ground rent?
Here are five actions you can take to recover ground rent:
- Demand ground rent legally.
- Write to the tenant’s mortgage lender.
- Take the tenant to court.
- Register a charge on the title.
- Forfeiture and possession.
What is the 18 month rule?
That provision, often called the 18-month rule, requires that costs incurred by landlords more than 18 months prior to the service of demands for payment are not recoverable from tenants.
How do I stop ground rent doubled?
You can extend your lease to try to avoid rising ground rents. One way to try to get around increasing ground rent clauses is to take out what is known as a ‘statutory’ lease extension – which you can do if you have owned your property for at least two years.