johnmc
Well-Known Member
Anyone implicated by the ground rent doubling clause on here. Anyone know what to do?
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Ground rent
- Thread starter johnmc
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denislawsbackheel
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Don't buy a property with such a clause.
Or
Buy the ground rent out.
Or
Buy the ground rent out.
johnmc
Well-Known Member
Don't buy a property with such a clause.
Or
Buy the ground rent out.
I think therein lies the problem. They are asking for £40k to buy it out.
Stockton Heath Blue
Well-Known Member
This is a problem that is only going to get worse unless the govt step in, as they are being pressured to do. There are firms out in the market prepared to pay in excess of 35 times the ground rent as an investment. The biggest problem is the national housebuilders, who are selling these leaseholds off to investors in order to increase profits - even a modest 50 unit development can yield c.£500k, which goes some way in contributing towards the land purchase or offsetting s.106, social housing requirements laid down by planners/local authorities.
In my eyes, it's immoral but if they didn't make money this way they would just increase their sales prices, so no easy solution but it's a pisstake to ask for £40k to buy out a £250 annual ground rent.
In my eyes, it's immoral but if they didn't make money this way they would just increase their sales prices, so no easy solution but it's a pisstake to ask for £40k to buy out a £250 annual ground rent.