Leaseholders are aware that time reduces the time remaining on their lease. This reduces the value of the property, which means that when you decide to sell, you might not have any equity to collect. Buying the freehold is a way to enhance the property’s marketability. You can also extend the leasehold to make the value of the property more attractive.
Some leaseholds include ground rent even after the landlord has granted an extension. Ground rent could also increase every year, leaving the leaseholder with an eye watering ground rent bill. But did you know you could extend your lease to 99 years or even 160 years and without a ground rent bill?
The government has proposed reforms to ground rent charges in order to protect home owners. Did you know that a freeholder must serve leaseholders with a Section 166 Ground Rent Demand Notice every time ground rent is due? Without notice served by the freeholder, a leaseholder is entitled to refuse or simply not pay ground rent. Also, the freeholder cannot increase ground rent unless it is stated in the lease, including the allowable increase amount.
Bear in mind the amount of ground rent you do have to pay against a lease extension, and weigh up the cost against ground rent when you do have to pay it. Also, have in consideration the fact that if your freeholder doesn’t serve you with a proper notice, you don’t have to pay ground rent at all.
If you would like advice on lease extension and ground rent costs, please give us a call for a no commitment discussion. SG
DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to
Venetia Lawson-Cruttenden [solicitor] is fantastic! She is always so thorough and efficient and gives you the
DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome
We were very pleased with the way that DG Law helped us on our transaction
Thanks for all the help from DG Law in pulling together our somewhat complicated loan.
DG Law resolved a difficult lease renewal for us and their services were excellent –
I needed understanding and experienced legal advice. DG Law provided an excellent service at a
My experience was second to none – the service was professional and personal. DG Law
DG Law always step up to the plate on our transactions and handle the various
DG Law was recommended to me and my partner and I received excellent advice –
Having worked with DG Law a number/couple of times now, I have been really impressed
DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting
DG Law organised and ran a very useful session to help to make our team’s
DG Law came recommended to me and whilst setting up a new business it was
We were recommended three lawyers to handle the sale of our seven year old successful
We live by our core values of transparency, flexibility and being honourable – every day
We put ourselves in your shoes so we understand your problems from the inside out
We deliver our advice in a way that is easy to understand