Questions on the lease extension and ground rent increase

Questions on the lease extension and ground rent increase

9:44 AM, 23rd November 2014, About 9 years ago 25

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First post here but I’ve been reading for a while and this is a great resource. Questions on the lease extension and ground rent increase

I’m nearing the end of my first BTL purchase of a flat but there are a few things to be finalised with the solicitor…. We put an offer in on the flat knowing that the lease was being extended to 125 years and knowing that the ground rent was £25 per year.

The purchase has been dragging on a little time now, so I made contact with the solicitor and she informed me that she’d had the lease extension info through. The new lease is indeed 125 years, but the ground rent has increased from £25 to £250 a year and rising after every 10 years according to the following formula – £250 x latest RPI / initial purchase date RPI.

I’ve emailed the solicitor stating that this isn’t the deal I signed up for and I’m awaiting a response.

Is this a matter to take up with the seller/estate agents or the solicitor??

Any advice and what are my options?

Thanks

Darren


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Comments

Mark Alexander - Founder of Property118

11:59 AM, 28th March 2018, About 6 years ago

Reply to the comment left by Munmun at 28/03/2018 - 11:20
All agents must belong to either The Property Ombudsman or the Property Redress Scheme. If they don't belong to either then report them to Trading Standards as that is an offence.

The agent is obliged to tell you which Ombudsman scheme they are signed up to.

Munmun

13:17 PM, 28th March 2018, About 6 years ago

Reply to the comment left by Mark Alexander at 28/03/2018 - 11:59
Many thanks
They are registered with https://www.tpos.co.uk/consumers/how-to-make-a-complaint
I need to give a formal complaint first.
I also contacted the council to check on average ground rent for that area - waiting for response.

Mark Alexander - Founder of Property118

14:11 PM, 28th March 2018, About 6 years ago

Reply to the comment left by Munmun at 28/03/2018 - 13:17
Thanks for letting me know and please update us on your progress

Munmun

17:40 PM, 28th March 2018, About 6 years ago

Reply to the comment left by Mark Alexander at 28/03/2018 - 14:11
The solicitors went back into their protective shell - no valuable advice is given - I feel stuck with them. They think I should take risk!!
The developer phoned and asked for a week to try to match the original offer on ground rent.
Now, I am not sure if I press with formal complaint to the agent anyway or not?

Mark Alexander - Founder of Property118

18:07 PM, 28th March 2018, About 6 years ago

Reply to the comment left by Munmun at 28/03/2018 - 17:40
Better to get the deal done on your terms if at all possible.

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