10:38 AM, 28th March 2018, About 5 years ago 3
I am buying off-plan flat, BTL investment in Liverpool. The Selling agent offered £300 ground rent be reviewed every 5 years according to RPI rate.
However, that wasn’t the case. The ground rent is £350 doubling in 5 years then to be reviewed every 5 years according to RPI calculations. £700 ground rent in 5 years for a flat which is not built yet in L3 Liverpool sounds too high and may be a problem when selling it in the future.
1 – how do I know what is a fare ground rent price for an area?
2 – I am pulling out – how can I get compensation for the conveyancing costs ?
3 – They are trying to negotiate by adding a clause to the lease – the question is what happens after 10 years? would the increase would be based on £700 ground rent, see offer below:
Developer has agreed to pay 50% of your ground rent after year 5 (when it doubles) meaning you are fixed at £350 per annum for 10 years. We will add a clause to the contract stating this. Please also remember you do not pay ground rent for the first 2 years from completion, so essentially the ground rent will remain at £350 per annum.
·Ground rent after 10 years increases at the rate of RPI
·Good will gesture of £350 payable to you on exchange to cover 1 year ground rent from Agent.
4- Is there an article that show me how the RPI rent increase is calculated?