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[sgclacy]

It was lender knee jerk reaction to the problems of 10 year doublers.

The lenders may themselves find that they could be "hoist with his own petard" if lessees abandon their properties for being un-mortageable...

[sgclacy]

Totally agree and the following article shows the problems those that talk hysterically about rising ground rents can cause

https://www.mortgagesolutions.co.uk/...rules-procter/

If a ground rent was say £1000...

[sgclacy]

I agree that a number of lessees cant sell their flats because the ground rent is greater than 0.1%and lenders will not lend. But that is not the failing of the landlord it is the irrational behaviour of lenders. The landlord has done nothing wrong, he puts the deal on the table and the lessee with...

[sgclacy]

the increase in the ground rent would be perfectly reasonable offer to restore the loss of purchasing power in the ground rent due to the adverse effects on inflation over the last 50 years

if you were working over the last 50 years and your employer refused to raise your salary to help...

[sgclacy]

This near hysteria that has broken out of late makes the ground rent terms on this flat seem like a problem to some buyers and lenders. There is nothing worrying about the terms of this lease - £300 is not a trival sum but neither is it so large as to cause worry and panic. Let’s get some perspective...

[sgclacy]

We are told the lease is down to 59 years and there was a review in 2014. So I assuming that the rent was adjusted in the 66 years of the term. Therefore the next review is in 28 years time.

28 years is too far away for it to be much use and relies on movement in capital values and therefore...

[sgclacy]

A lease ext will cost you on a 59 year lease with a ground rent of £785 pa annum and with a flat worth £175k extended something in the order of £28k plus costs

Therefore there is nothing to be made at buying it at £150k, in fact to deal with the stress and agro you need to be getting...

[sgclacy]

A small ground rent will attract a higher capitalisation rate because the costs of collection weigh in more heavily on the smaller rent - very small rents possibly as high as 10%

capitalisation rates have often not been given a lot of discussion as the type of cases that go to the FTT are...

[sgclacy]

Some have tried to argue that a onerous rent should be capitalised at a higher rate because of the belief that the government will legislate

Firstly the valuation has to be done in a no act world so the perceived advantage of the hope the government will legislate has to be ignored
...

[sgclacy]

The basis of valuation is on the assumption the flat is in lease maintained condition . If it is better than when the lease was granted the lessee can claim tenants improvements and have the value reduced

if the flat has been neglected then it is valued as if it had been maintained properly...

[sgclacy]

If the cost of a statutory lease extension was to rise as I outlined then the value of the flat with the short lease would fall to reflect that much larger premium...

[sgclacy]

I disagree - the following FTT case allowed management and surveying costs when not provided in the lease

https://decisions.lease-advice.org//...4000/13139.pdf...

[sgclacy]

With the issues over human rights (ie the landlord to be fairly treated in calculating the compensation) any changes to the established formula will be difficult to get through. The formula introduced in 1993 was framed with regard to ensuring adequate compensation to the landlord

a number...

[sgclacy]

I am very confident in thinking you have to do nothing!

[sgclacy]

Huge difference - it would be impossible for that one lessee to be able to exercise their rights.

Although it may surprise many to know you don't need to serve the notice on one of the lessees where there are less than 10 lessees. It is validly served if served on all but one in the case...

[sgclacy]

You need to be very careful on this point

if you grant a lease on the roof void BEFORE it has become a flat you may trigger a right of first refusal - if a landlord dispose of it after it is treated as a flat then RFR don’t apply

I cannot stress how important it is to take...

[sgclacy]

As you will appreciate there are FOUR variables -

1) Value of the flat (if it had a long lease and in good order)
2) Capitalisation rate
3) Deferment rate
4) Relativity if less than 80 yrs remaining

What are your figures and what is the freeholders figur...

[sgclacy]

The success in seeking reimbursement will depend more on the style and approach of your letter than the actual law.

i would write to the freeholder stating that you commissioned the asbestos report and as a consequence have undertaken a task which they should have undertaken - therefore...