Lease extension with rising rent

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    #16
    Originally posted by Section20z View Post
    Just to update, the informal offer has not been accepted and freeholder is threatening to apply to court to have S42 notice declared invalid due to not giving full 2 months time to respond (served by email without allowing time for service) and property not being correctly identified (flat number not given)
    In fairness, the freehold has every right to reject the notice when errors are made of that magnitude.

    As it is invalid, you can immediately serve another. If it was deemed valid, and you withdrew then you have to wait 12 months

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      #17
      Originally posted by Gordon999 View Post
      This report on CMA actions may help if your property developer is a company named in this report.:

      https://www.gov.uk/government/news/c...easehold-terms
      Very large ground rents bizarrely are not onerous. - a very large rent stands out during the conveyance, and the parties adjust the price accordingly. If a ground rent on a flat ordinarily worth say £300k with a nominal rent is sold for £10,000 because the ground rent is say £10,000 per annum then it cannot be said that the rent is onerous because the purchaser would have paid very little capital to acquire the lease and would have certainly spent time thinking it over before purchase

      The rent in this case attempts to keep pace with the rise in property values are there is nothing outrageous about it. In fact, because it is linked to the sale price, the parties will spend time calculating it and reflecting on it before taking on the lease - therefore it should not be onerous. It is onerous if the conveyance is handled in a cack-handed way and the rent not thought about - in which case why should the freeholder who is not a party to the subsequent sale have to lower the rent to help tidy up the mess of others



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