Exorbitant RPI linked ground rent?
3:34 PM, 13th October 2022, 4 years ago
3
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Exceptionally high RPI in the current cost of living crisis means those existing leaseholders with RPI-linked ground rents face exorbitant increases.
The UK Government has stated it plans to do something about this, as it has now created a very unjust and uneven playing field by ensuring all new leases are with peppercorn ground rent only.
What confidence can we have that the Government will actually announce the plans it claims to have, within this Parliament?
I am definitely not confident!
Many thanks
Steve
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Member Since October 2013 - Comments: 1634 - Articles: 3
10:52 AM, 14th October 2022, About 4 years ago
I have a 5 year RPI ground rent, and have just received a letter from the Minister, Simon Clarke MP, confirming the government will bring legislation to address such egregious ground rents, and make lease extensions for existing leaseholders quicker and easier, in this Parliament.
I am not holding my breath.
Member Since January 2022 - Comments: 61
11:38 AM, 14th October 2022, About 4 years ago
Yes, i am concerned also.
My GR is £498.50 for 1 bed flat and £609 for a 2 bed flat, both in same property.
Renewal is based on an incomprehensible RPI based formula written over 3 pages of the lease.
Rises to occur on 20 year cycle with next rise due 2031. Should I save some peppercorns in case our politicians might do the right thing?
At the rate government’s deal with matters, i am not holding my breath as I will problem die of shock when I get the 2 increased bills. If so I won’t be paying them.
Member Since April 2020 - Comments: 159 - Articles: 1
2:35 PM, 14th October 2022, About 4 years ago
If we look at the recent arrival of the Leasehold Reform (Ground Rent) Act 2022 which took effect on 30th June 2022 … that arrived on the parliamentary start line about five years earlier. So, if the government actually does what it has promised … we’re looking at an Act taking effect in 2027 or thereabouts. And before then we have a general election … and who knows how many Housing Ministers, as they don’t last long.
The only way to be certain about your ground rent in the future, is to go down the section 42 lease extension route … pay a chunk of money now … and peppercorns forever after … no matter what the government does or doesn’t do.