A mid-terrace property currently divided to provide a ground floor flat and a first/second floor maisonette.
The ground floor flat is sold on a lease for a term of 99 years, from 5th April 2006, at a current ground rent of £203.66 per annum. The ground rent increases by £125, doubling every 21 years, with the next increase to £328.66 due on 5th April 2037. Part of the ground rent is subject to periodic reviews linked to the letting value of the site of the building but this element of the ground rent (currently accounting for £78.66) is capped two-thirds of the rateable value of the flat.
The first/second floor maisonette is sold on a 99 year lease, from 24th June 1988, at a current ground rent of £50 per annum. We understand from the sellers that there is an outstanding rent review and when settled it is anticipated the ground rent will increase to £78.66 because the ground rent is currently capped at two-thirds of the rateable value of the flat. The sellers have also advised that it has been considered appropriate to treat the two-third rateable value cap as still applying, as rateable values have been frozen rather than abolished - if they were to be abolished it is considered that future ground rent reviews for both flats would result in very substantially greater ground rents being payable.
We understand the freeholder insures, maintains and manages the block, recovering the costs of the same from the leaseholders by way of a service charge.
Section 5(b) Notices under the Landlord & Tenant Act 1987 (as amended) have been served and the leaseholders have not reserved their rights under the legislation.