Lease extension - ground rent review based on "market rate"

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    Lease extension - ground rent review based on "market rate"

    The lease for the flat in which I live has a little over 82 years left. So in March I wrote to the FH asking about extending it. They sent me a form which I returned and they were supposed to reply within 10 days.

    They still have not sent me an offer. I just spoke to them and they say that the problem is the ground rent review. The ground rent has been £100/year since I bought the flat as new. Apparently there is a clause in the lease allowing for it to be reviewed after 21 years based on market rates.

    They say it is normal for a review to give a fixed increase, and they are having trouble valuing it due to the market rate clause. They are currently checking the leases of all the other flats in the block.

    Has anyone any experience of this sort of clause?

    #2
    Originally posted by PJackson View Post
    I just spoke to them and they say that the problem is the ground rent review. The ground rent has been £100/year since I bought the flat as new. Apparently there is a clause in the lease allowing for it to be reviewed after 21 years based on market rates.
    Is it? What is that clause in your lease saying?

    I take it you bought the flat with a new 99 year lease?

    Comment


      #3
      Need to see the exact wording. Both sides ought to using a valuer esp. where these indexed clauses are used as they get complicated. Sorry no easy answer.
      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

      Comment


        #4
        If your lease started at 99 years and is now down to 82 years unexpired , the GR review and increase is not due for another 4 years. Are you asking for the 90 years statutory extension which after extension gives 172 years and peppercorn ground rent ?

        You can find a rough method of calculating the cost of lease extension on LZforum thread no. 11080 .

        Comment


          #5
          The lease was for 99 years when I bought the flat (shortly before it was completed).

          I just asked about extending the lease and did not specify any details (yet).

          I am trying to find a copy of the lease, but no luck so far. I thought my mortgage lender might have one, but they say they don't.

          Comment


            #6
            Until we see the clause......the online calculators are useless to you, as is the linked thread as ground rent is reviewed on an index not a fixed amount. When capitalising the ground rent forecasts have to be made. The higher the amount the more it impacts the premium, sorry.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              Originally posted by PJackson View Post
              I am trying to find a copy of the lease, but no luck so far. I thought my mortgage lender might have one, but they say they don't.
              You should be able to buy a copy of your lease from Land Registry.

              Comment


                #8
                The Leasehold Advisory Service site says "This should have been given to you by your conveyancer when you purchased the property. Where there is a mortgage on the property it can be obtained from the mortgage lender. The Land registry will also hold a copy. Please note that an administration fee may be charged for providing a copy of the lease."

                I may have a copy somewhere, but it has been 17 years and I haven't been able to find it yet - though I have found other documents I wanted

                I tried my mortgage lender but they said they don't have a copy and suggested the Land Registry.

                I have been on the Land Registry web site and downloaded some info about my flat, but can't see anywhere to ask for a copy of the lease. I have sent them a online enquiry.

                Comment


                  #9
                  Its an option when you search the title and locate it. Document view cost £3 and can be cheeky with screen dumps
                  .......
                  Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                  Comment


                    #10
                    Where do you see this? If I look at the LR database all I can get is

                    Title register (example Link opens in new window) £3.00
                    Title plan (example Link opens in new window) £3.00
                    Flood Risk Indicator result (exampleLink opens in new window) £9.00 (excl. VAT)

                    I always thought to get a copy of the original lease lodged with LR one needs to send them a form and a cheque for £7?

                    Comment


                      #11
                      I get the same as mattl

                      Comment


                        #12
                        Are you professional uses or personal?
                        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                        Comment


                          #13
                          I am a Personal user.

                          Comment


                            #14
                            They replied today -

                            You can apply for copies of deeds and documents, including leases, that we hold by completing form OC2 and sending it to us by post.
                            When filling in the form, be sure to:
                            • enter the details of the land or property that you would like to find out about
                            • enter the title number (our unique identifying reference)
                            • enter your own details into the applicant fields
                            • provide as much detail as you can about the deeds or documents you want copies of.
                            There is a fee for this service. Find out where to send your form .
                            You will find further information in Public Guide 1 – A guide to the information we keep and how to obtain it.

                            Comment


                              #15
                              Originally posted by leaseholdanswers View Post
                              Are you professional uses or personal?
                              Haha there we go, this is the answer

                              Comment

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