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[sgclacy]

For it not to keep pace with inflation, the rate of inflation would need to be greater than 3.358% may in the short term, but the capital markets don't price the inflation risk at that level

I would guess the capitalization rate to be 3.5%

To value that income as it is so very...

[sgclacy]

With interest rates so very low and the rent being quite large a capitalisation rate of between 5.5% to 6% is the rate likely to be used - I have used 5.75%

as Section20Z recommends as you are nowhere near 80 yrs it is worth trying to see what the terms are for an informal ext and as you...

[sgclacy]

the fee goes to the freeholder with a copy to the RTM as the RTM does not collect the ground rent and the notices need to be served on the freeholder as the freeholder is the only one who can give a receipt for ground rent. Further if there were breaches under the lease the RTM could inadvertently waiver...

[sgclacy]

Onerous is when the ground rent terms are not properly considered at the time of purchase

A ground rent of £3000 a year linked to the RPI is not onerous if the price paid for the property is some £100,000 less than would be the case if only a peppercorn is payable. It is when the terms...

[sgclacy]

Upper tribunal...

[sgclacy]

The freeholder is a resident controlled company and presumable had to gather in the funds before financing the works through their agent

A managing agent would be unlikely to fund the cost of the works before getting it from the lessees - more probable that the lessees paid in advance but...

[sgclacy]

A further thought - if the freeholder had gone with the cheaper quote from the company owned by one of the lessees - the decision would still have been the same

Dispensation would surely have been given if that had happened however as the court has now ruled on the issue of the service...

[sgclacy]

I suspect based on my knowledge of the barrister used that significant costs have been incurred

I am not sure what advantage has been obtained - para 35 states:-

Tribunal’s decision is that the consultation requirements were not complied with and that as things stand, in the...

[sgclacy]

You can string it out for a year if you are prepared to pay the professional costs on your side if so doing - the landlords costs will not increase by much if there is a delay...

[sgclacy]

One of the proposals is to cap ground rents in an enfranchisement claim/lease extension claim. So in theory if the initial rent was say £350 rising by the RPI this would be trimmed back to £250 and any future rises ignored

Trying to view this objectively, it does seem somewhat of an ambitious...

[sgclacy]

As I mentioned earlier a ground rent is on a sense an interest payment in return for part of the consideration for the property . In credit agreements you have the APR quoted and I believe the NPV of the ground rent should also be stated

a credit agreement can only be brokered by a regulated...

[sgclacy]

No - it is a recurring mistake made by many commentators - grounds rents were most certainly not for very small sums - ground rents on swaths of houses in the north were £1 to £2 per annum at the turn of the twenty century and in today’s terms that is some £200-£300 per annum - I have several...

[sgclacy]

Adding to what Section20Z comments - your ground rent would be perceived as an issue by buyers and their lenders - the rent being twice the 0.1% limit some lenders have imposed (why 0.1% was chosen is surprising - no articulated study or thoughts have come from lenders as to how this figure was arrived...

[sgclacy]

No great pearls of wisdom will come from employing a surveyor to work out the premium - they will give you a range of values depending on the capitalization rate and clearly you know how to do it - the ground rent does have a strong element of protection from inflation, but that is dependent on house...

[sgclacy]

A consequence of the near hysteria over ground rents is that a rent of some 80p per day (. A quarter of a cup of coffee in Starbucks a day ) may be viewed as onerous and cause issues in sale being > 0.1% of the value of the property

With the market probably cooling ~ particularly for...

[sgclacy]

what is the proposed ground rent and its review pattern

[sgclacy]

Could the root of the problem be that the new lessee feels an outsider, is it possible for them to buy a share of the freehold from you and the other flat

[sgclacy]

Does the plan to your lease show the cellars being edged in red ?

[sgclacy]

I was unable to read the scan - I fortunatly the size of the upload is somewhat limited

i suspect your property being in central London will be of some value and you really must take legal advice on this

An observation I would make is that the freeholder could grant a lease...

[sgclacy]

That would probably be deemed acceptable by the Tribunal, but that is at the very top end of the acceptable range - as you lease was below 70 years there would be some time spent on calculating and arriving at the marriage value

There is a lot to be said for having prescribed rates and...