Ground Rent.

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    Ground Rent.

    If this is posted in the wrong section, I'll be happy to move it, but I need a bit of advice.

    I have a two bedroom flat on a 99 year lease.(66 years left to run)

    When I bought the leasehold, the ground rent was set at £15 per annum for 99 years.

    The lease states that categorically. The lease does not say the ground rent can be raised unilaterally by the free holder (with or with my agreement)

    It only says "£15 a year ground rent for 99 years".

    The original freeholder has now sold the lease to a new investment company who have sent me a request for the new ground rent which they have set at £580 a year. (This does not include services or insurance. JUST ground rent)

    This seems just a tad high to me, if indeed, it's legal.

    So, with no mention being made in the lease of anyone's ability to raise ground rent, my questions are, can they do it? and is there anywhere I can turn to in order to get the ground rent 'assessed' as being fair?

    Thank you for your time.

    Sounds like they are trying it on...very dubious.

    Reply stating the clause in your lease about the ground rent and its term and ask them to show you where in your lease they can change it. They can't vary your lease without your agreement.

    You might also consider requesting a statutuory lease extension adding 90 years with nil ground rent for the future. See for details.


      Double check your lease but sounds like they are trying to scam you.


        if the investment company is of any size; suggest you check on the website company check then it looks most likely that you may has misread the lease. Some ground rent have a clause that review the rent to the capital value of the flat and this can as a result of unexpected house price inflation caused the rent increase to be very large.

        Have your neighbours been sent similar demand and what was there opinion on this


          I agree with the above, if it says £15 then £15 it must stay, my FH overcharged me GR for many years but I got it all back plus interest

          He claimed there had been a deed of variation to increase the GR agreed by all parties when we purchased the flat but there hadnt been, it took a bit of investigating and obtaining the deed from land registry to resolve the issue.
          Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

          I do not accept any liability to you in relation to the advice given.

          It is always recommended you seek further advice from a solicitor or legal expert.

          Always read your lease first, it is the legally binding contract between leaseholder and freeholder.


            33 years ago leases rarely provided for rent to exceed two-thirds of the rateable value because if they did some nasty consequences followed, e.g. a requirement to refund any premium paid. It is unlikely therefore that the OPs lease has any sophisticated provisions for the increase of rent. There is a possibility that the lease has a provision for a stepped increase, but if it had I am sure the OP would have noticed it. However, the OP should, as suggested, just check that any provisions allowing an increase are not tucked away in some schedule. The key part is where the lease reserves rent. In a lease granted 33 years ago this is probably the part following the words YIELDING AND PAYING. If the OP wants to quote what comes after those words we can offer an opinion on whether the rent is fixed at £15 per annum.


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