buying freehold,what happens to ground rent?

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    buying freehold,what happens to ground rent?

    i am buying the freehold of a house where i will occupy the groundfloor and there is a long leaseholder upstairs. What happens to the ground rent that the leasholder has paid to the previous freeholder up until we buy it. I dont think the freeholder has carried out all the maintenance they were supposed to so i am wondering what happens to the ground rent they received, do they keep whatever they received up until we take possession. I havent seen the lease yet but was wondering do they have to keep the funds separately, in a sinking fund for example

    #2
    1. How much is the annual ground rent ? You can ask for apportioning if it is a large amount paid at start of the year and you are completing the sale in the middle of the year? if the ground rent is say only 5 pounds, then it is too trivial to split.

    2. If service charge is paid by the leaseholder to the freeholder under the lease , this money must be held separate. I suggest you read the lease first.

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      #3
      annual ground rent is 100 pounds. It just doesnt seem fair that she can keep the previous years ground rent and then we have to move in and pay for all the maintenance that she should have done

      Comment


        #4
        Well, it's all a matter of negociation isn't it? Now you ave established these facts, which preumably you were not aware of when you made your offer for the freehold you will have to renegociate the price to compensate you for the additional expense you will be involved in when maintaining the leased part of the property.

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

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          #5
          Originally posted by Penny06 View Post
          annual ground rent is 100 pounds. It just doesnt seem fair that she can keep the previous years ground rent and then we have to move in and pay for all the maintenance that she should have done
          Maintenance should not come into it - ground rent is rent paid by the leaseholder for the ground you own which it eventually sits on, via your property on the ground floor.

          The lease should be studied very carefully, as maintenance and the apportionment of costs, together with who is responsible for what will be detailed.

          Incidentally, how many years are left on the lease for the flat upstairs?
          On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Because of the number of posts I have done, I am now a Senior Member. However, read anything I write with the above in mind.

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            #6
            Is ground rent payable in advance or in arrears? V cannot retain any rent paid for a period after V ceases to own f/r. Solicitors usually apportion it on Completion Statement, unless it's minimal.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

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