Leasehold property

[LOliver123]

Hi
I am buying a leasehold flat, the ground rent increases by £175 every 10 years, does that sound reasonable or not?

£17.50 per year, could be much worse

Please get advice here : www.facebook.com/AbolishLeasehold/

Thanks - yeah that was my initial thoughts

Thank you , will check it out

That doesn't sound particularly unusual - the ones which double are the ones you want to watch for.

How long is the lease for?

Yeah - have heard of those ones

110 years

What did the ground rent start at?
Is it in London?
If you're getting a mortgage your lender will have requirements (some are more precise than others).

Hi, no it’s not London. It increased last year and is currently £350, next increase 2028 by £175 , and every 10 years thereafter by £175.

Hmm. I'd be unsure then. This is what all the lenders accept: www.cml.org.uk/lenders-handbook/englandandwales/question-list/1852/
Even if you're not getting a mortgage you need to think about resale.

Thank you - that is really helpful! I contacted my Solicitors this morning to ask them to check. It is beginning to ring warning bells. I have looked and I can see you can extend the lease after 2 years , which reduces the ground rent to peppercorn . But that is expensive - so I could factor that in and adjust my offer accordingly. Thankfully I am in the very early stages of the process! Might be best to look at a freehold terrace I think !