beefy

Registered with Property118.com
Thursday 23rd January 2020


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Total Number of Property118 Comments: 1

beefy

20:15 PM, 23rd January 2020, About 2 years ago

Pulled out again due to onerous Ground Rent increases

RPI increases shouldn't be an issue in itself. If it is affordable now then it should be affordable in the future because wages should keep pace with inflation.

Mortgage Lenders don't have a problem with RPI increasing leases.

We bought our house in 1998 and it's worth 3.5 times more than we paid for it. But if you look at the increase in the RPI since then it's less than 3 times higher. So the ground rent is cheaper in real terms than it was originally.

Hope this helps. There's a lot of scaremongering and confusion in regard to onerous ground rent charges. The real issue would be if ground rent increased at a faster rate than house price inflation. There are leases that are referred to as "doublers" which will increase at a greater rate than inflation unless inflation is unusually high and these are the ones with onerous terms.... Read More