17:50 PM, 6th July 2013, About 8 years ago 20
I bought 3 properties off-plan in 2008, and was assured that rental demand would be high. However in this particular area (Dudley, West Midlands) rents have declined, and now the Ground Rent is around 25% of the rentals income.
The freeholder’s nominated management company have increased their fees, so that takes another 25%, and provide a poor service. By the time the mortgage gets paid, well I’m sure you see where I’m heading.
I know, I know, I should have questioned my solicitor more closely at the time, but as a newbie landlord, physically remote from the property …. mea culpa, but I had no idea what the ground rent should be.
My question – is the NO prescribed method to set the value of Ground Rents ?
In every other field (consumer, contracts etc.) the concepts of “reasonable” and “fair” are upheld in law. Does nothing apply in this area?
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