Reply With QuoteThe short answer I think is no, a new owner can't put up the 'peppercorn rent' arbitrarily.
http://www.mypropertyguide.co.uk/art...round-rent.htm
i own a flat which i rent out and last year received a letter re the leasehold, the landlord 'leaseholder' ?? wants to sell up and offered us the chance to buy the lease but i didn't bother as it still has about 150 years to run and they wanted what i would consider a princely sum, iv'e now received another letter stating if i'm not going to buy then it will be sold on.. my question is if some random person buys it will they be able to charge me whatever they want for the ground rent? or are there some regs around this, currently i only pay £10 per year which obviously i'm more than happy with
thanks in advance for any help
gary
The short answer I think is no, a new owner can't put up the 'peppercorn rent' arbitrarily.
http://www.mypropertyguide.co.uk/art...round-rent.htm
First of all i think you mean the freeholder of your building is offering you, a lease holder, the opportunity to purchase the freehold. This has numerous benefits. First of all we need to establish how many other leaseholders there are in your building. Is your flat in a converted house with just one other leaseholder or are you in a block with 5/10/20 other flats? The benefit of being the freeholder comes in many guises. Their may be other flats in the building with short leases of less than 70/80/90 years which will need to be renewed before they can be sold.The freeholder gets the benefit of x amount of money for renewing the lease. Often tens of thousands. The freeholder can also arrange the insurance and maintenance of the building and charge this to the leaseholders by way of a service charge/maintenance charge etc. If there are any outside car spaces not attached to the leases, the freeholder can sell these off individually which can be pretty lucrative. Also the latest trend is for the freeholders of buildings to sell the loft space of flats to developers to develop into flats etc. many many variables at play but i know if i could and it were viable id always like to own the freehold of any property i own.
A good resource is http://www.lease-advice.org
As an owner of a lease, you might want to get your thoughts around some of the issues. It is complex area of the law and one where there are many protections for leaseholders, but still plenty of opportunities to get into difficulty.
Thanks, it's in a block of six and all flats have the same amount of years.. The landlord is looking for £1400 from each..Originally Posted by Yeti
Buy it, a flat with share of freehold has to be worth at least £1400 more than one without.
Wow! I wouldn't mind buying the freehold for all (but one) for 5 X 1400£. Considering the amount of money I've "wasted" over the years this seems like a small price to pay.
Do your self a favour and buy the freehold to the whole building. You will easily recoup the money if you ever sell the flat. You will look back one day and say I could have bought the freehold for 6x £1400 which isn't a lot of money. A lot of Jewish people at the auctions love and I mean love buying all the freeholds. There must be something in it for them. One last point, if I remember correctly, the freeholder must offer it to the leaseholders before he sells it on. I personally would buy it, even if I were to put it in a property auction to test the water and see if I could double my money to a speculator...
I bought a flat and the leasehold was included as the whole building (3 flats) were sold all at the same time, a new lease was made 999 years. It apparently didn't make the flat more expensive just more attractive for me to buy. A 150 year lease is OK but not amazing - if it was me i'd happily pay out £1400 for the leasehold.
This!!! Absolute bargain for a freehold.
Still get a solicitor's advice as it's a shared building.
Form a residents committee and buy.
Get all paperwork drawn up by a solicitor who knows about this stuff.
Alternatively by all 6 freeholds.
In either case check you are getting all the land / parking spaces / driveways etc.
Freehold not leasehold...
Chaps you've been very helpful as allways ill talk to my solicitor and look to buy if he agrees
Thankyou
At that price buy them all up tomorrow. Bargain. If they don't agree, sort it out with the other owners later if necessary.
Do not let this opportunity go!
Precisely what was said here!
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