Leasehold purchase and ground rent fear?

Leasehold purchase and ground rent fear?

9:23 AM, 8th February 2018, About 7 years ago 24

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My daughter is about to exchange on the purchase of a new flat within a converted house.

The ground rent is £300 per annum increasing every 10 years by the prevailing inflation rate at the time.

I am aware of the scandal surrounding leases with ground rents doubling every 10 years as high lighted by our  friend Patrick Collins, I think,  from The Guardian.

I am just wondering whether an increase by inflation is really any better or should we just walk away and find a property with a more conventional ground rent arrangement?

I am aware that increasing ground rents every 10 years are the way things are going.

Thanks

Chris


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Dennis Forrest

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13:18 PM, 10th February 2018, About 7 years ago

This assumes no time lag between inflation and incomes. At the moment due to austerity measures peoples average incomes are not rising by 3.6%, one of the latest RPI figures. I lived and worked through the high inflation of the 1970's and the 1980's and peoples incomes were always lagging behind inflation.

Puzzler

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14:25 PM, 10th February 2018, About 7 years ago

Reply to the comment left by at 10/02/2018 - 11:30
Ha ha you are probably right but we can hope. There is a consultation in progress. I think it's closed now but keep an eye out. There is a conference coming up about it. I might go, it is not expensive

Puzzler

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14:27 PM, 10th February 2018, About 7 years ago

Reply to the comment left by Ian Cognito at 10/02/2018 - 12:11
Trouble is inflation is a can of worms and not even-handed.

Read this case:

http://www.bbc.co.uk/news/uk-wales-south-west-wales-33071504

Chris Unwin

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9:33 AM, 12th February 2018, About 7 years ago

Thanks to everyone who has contributed to this thread. One thing is clear; I will scrutinise very carefully the ground rent provisions in any future leases I contemplate buying.....

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