Ground rent increased between signing our Lease and CompletionMake Text Bigger
This is my first contribution to Property118. I hope to make many more.
We have formed a Right to Manage (RTM) Co for our block of 137 properties, and are now going fo Right to Enfranchise (RTE). However, we have recently discovered a discrepancy in our leases, which our solicitor (no longer practicing!) did not point out, or conveniently ignored.
The Ground rent was £150 when we signed our lease, but have since noticed it had been changed to £250 in the lease at Completion.
This makes a massive difference to the price our Freeholder expects us to pay for the RTE.
Has anyone experienced something similar?
Definitions From .GOV
The Right to Manage lets you and the other leaseholders take over certain management responsibilities from the landlord without having to prove bad management.
You’ll need to find out if you qualify and set up a company with the other leaseholders. The landlord will then transfer the management responsibilities to the company. You and the other leaseholders can manage the building yourselves or pay a managing agent to do it.
The Leasehold Advisory Service (LAS) has a guide on the Right to Manage.
Right to Enfranchise
Subject to certain conditions, leaseholders of flats have the right to enfranchise their building as a group if they and their building qualify. They have this right even if the freeholder or landlord does not wish to sell.
This is known as the Right to Enfranchise, and must be exercised by a ‘nominee purchaser’, who will act for you throughout the process and will own the freehold for you after you enfranchise.
The ‘nominee purchaser’ is explained in further detail later in this chapter. Once the freehold has been bought, the leaseholders can decide how they want to manage the building, for example, managing the building themselves or appointing a manager to do so on their behalf.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.