15:55 PM, 6th April 2021, About 10 months ago 13
I am selling a property with a lease of over 100 years Ground Rent of £175 pa with 10-year reviews related to inflation.
My buyer has pointed that at some time in the future the GR will exceed £250 and the property will technically become an AST with rights of repossession by the freeholder if the GR is not paid.
Having looked into this it appears to be an unexpected outcome from the 1998 Housing Act. There does not seem to be anything I can do to change the situation, but my solicitor has suggested offering the buyer indemnity insurance which is what I will probably opt for.
Has anyone else come across it because as far as I can see it could affect thousands of properties eventually?
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