How to abolish ground rent on a leasehold property

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    How to abolish ground rent on a leasehold property

    Apparently, there is a way around getting rid of ground rent. If a current lease has 81+ years left on it there is no 'marriage' value to calculate, which gives you the legal right to extend the lease by 90 years and, effectively, abolish the ground rent to ZERO for the term of the lease. Without having to pay marriage value, all one would have to pay is the legal fees on both sides. I beleive it's as simple as that. Please, correct me if I am wrong.

    #2
    You need to have owned the property for 2 years before you can apply for a statutory extension. The premium you pay for extending will reflect the loss of ground rent to the freeholder.

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      #3
      As you say nothing to pay aside from the landlords legal and valuation fees plus your own and the capitalisation of the rent and the discounted value of the reversion.

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        #4
        Alternatively you have the legal right, with some restrictions, to enfranchise your freehold either collectively in the case of flats or individually in the case of houses. Costs are similar to lease extension.

        Just think...no more (if individual freehold secured of course) leasehold issues, no more freeholder restrictions and no more managing agent incompetence!

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          #5
          how would buying the freehold on a block of flats work if the entire block doesn't band together? Say, two flat owners from a 10-flat block band together to buy the freehold. Would that mean the managing agents would have no authority over the two flat owners who bought the freehold?

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            #6
            No, you'd still buy the whole freehold. The difference is that the two who didn't join wouldn't have contributed.

            I imagine that would mean that they didn't get shares in the freehold company - ie they were just leaseholders - but I'm not an expert in this.

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