How to get rid of onerous ground rent?Make Text Bigger
I’m negotiating the purchase of a leasehold flat, and have found that the lease contains a very onerous Ground Rent clause. The Ground Rent is set as a percentage of the flat’s value, and when it’s next assessed (in 14 years’ time) the Ground Rent could be silly money – easily over £2,000pa. The lease itself is nice and long; 96 years.
When I suggested going down the formal Section 42 route the seller responded by saying he will seek to agree a new lease informally instead. What do people think are his chances of getting a new lease sorted that actually solves our problem?
I suspect it’s all a waste of time and that the only real solution is a Section 42 notice, but the seller isn’t yet willing to do that. The current Ground Rent is £700pa, so the premium under Section 42 would be very high, £15,000 or so.
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