Landlords Alliance – Emergency Euro Elections Statement21:09 PM, 21st May 2019
About 5 days ago 75
I have a small one bed property, which is currently on a 70 year lease and I need to sell quickly.
I’m in the process of negotiating a lease extension deal with my Freeholder. The deal as a whole seems quite fair at a premium of £5750 and ground rent set to £200 pa, but they want to add a clause in my ground rent where the amount increases from £200 by a further £200 every 15 years, or by the increase in Retail Price Index, whichever the greater.
What I would like to know is how the future value of the freehold will be calculated, so for instance if within the first 15 year period, whoever buys the property, If they decide to formally serve notice for a 90 year extension with peppercorn rent or partake in collective enfranchisement before the first rise in ground rent, will the value be calculated using the £200 increments as stated in the lease or can they use historic RPI data to get a figure??
Hope that makes sense 🙂
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