ground-rent-review-patterns

Ground Rent Reviews

Do you need help with ground rent review patterns? When you draw up your leases you should take the opportunity to enhance the value of your building.

When you prepare your leases for sale you can choose whatever ground rent increases you like. There is no set formula for how much the ground rents should increase by and how often they should increase.

Obviously you have to sell the leases so you don’t want to be aggressive with the increases as this will cause problems selling the leases. Some leases in London where the prices are very high seem to be in a stratosphere of their own and they are very much sought after by companies such as ours.

Ground Rents Doubling Every 25 Years

Probably the most common types of increments that you will find are ground rent that double every 25 years. These are pretty standard and should really be considered to be the minimum increments that should be used. These will fetch pretty good money and will sell easily enough.

Every 15 Years And Linked To RPI

Having your ground rents increase in line with the retail prices index is a very good idea as you protected your investment against inflation. This is the type of increase that pension companies want to buy for their annuity policies. They are guaranteed to provide a good income to the freeholder throughout the term of the lease. You will not have any problems selling leases with this type of increment as this increase will be considered to be perfectly reasonable.

Increasing Every 10 Years

There are any leases that have been created where the ground rent increase every 10 years and are linked to RPI. Obviously these are great from an investors point of view. These are considered to be amongst the best types of investments to buy and therefore sell for more than most. Again you will not have a problem selling a flat with this type of lease as this type of rent review is often used when drawing up new leases

Get In Touch For Help And Advice

We are very happy to help and advise you if you are preparing new leases. If you are selling flats in London the amount of ground rent that you can charge will differ from other parts of the country. It is quite possible that flats in London will pay twice the amount of ground rent charged in other parts of the country.