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Sinn Féin Pledges To Abolish Ground Rent

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Sinn Féin pledges to abolish ground rent

http://planetproperty.wordpress.com/2011/02/18/sinn-fein-pledges-to-abolish-ground-rent/

Shouldn't we do the same? Isn't it a fecking feudal relic?

The Duke of Westminster still owns a large chunck of London FGS.

( The "Grovesnor Estate" website: http://www.grosvenorestate.com/About/History/The+London+Estate.htm )

This is just ridiculous in this day and age. Not only "subjects", but also serfs.

http://www.grosvenorestate.com/NR/rdonlyres/F756A7C8-81F5-4D5F-8C65-E88DD8DF6789/8270/5fields.jpg

5fields.jpg

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Sinn Féin pledges to abolish ground rent

http://planetproperty.wordpress.com/2011/02/18/sinn-fein-pledges-to-abolish-ground-rent/

Shouldn't we do the same? Isn't it a fecking feudal relic?

The Duke of Westminster still owns a large chunck of London FGS.

( The "Grovesnor Estate" website: http://www.grosvenorestate.com/About/History/The+London+Estate.htm )

This is just ridiculous in this day and age. Not only "subjects", but also serfs.

http://www.grosvenorestate.com/NR/rdonlyres/F756A7C8-81F5-4D5F-8C65-E88DD8DF6789/8270/5fields.jpg

5fields.jpg

Leaseholders can abolish ground rent by purchasing their freehold or buying a statutory lease extension. The onus is on them to be proactive. Obviously, it would be better if the leasehold system was abolished entirely but that aint gonna happen.

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Leaseholders can abolish ground rent by purchasing their freehold or buying a statutory lease extension.

In England at least, that's usually easier said than done, and often impossible.

I grew up in a two-masionette house with an absolute git of a ground landlord who was forever trying to extort money out of my parents; she claimed it was for repairs to communal areas of the property, but in fact it was almost always to upgrade her flat (and the work was always to be done by her friend the builder, doubtless under the radar of the VAT man). When the leasehold rules changed in the late '80s or early '90s to give leasehold OOs significantly enhanced protection, guess what? There was an exemption for ground LLs who lived in the same building as the leaseholder. If you live in a block of flats and a majority of you there feel that you're being ripped off by the management company, you can collectively vote to buy the freehold out from under them. But where it's a smaller building with only one or two individual dwellings in it, and/or the ground LL actually lives in it, the situation when my mother investigated it was that buying out the freehold is to all intents and purposes impossible. Furthermore, the LL can make buying a statutory lease extension so tortuous that it can easily end up costing you four figures in lawyers' fees. And even if you get one, you still have to pay ground rent; though the sum involved is usually nominal if there's no actual property management involved, e.g. maintaining the communal facilities of a block of flats. That is why even at the height of the boom, leasehold flats with significantly less than 70-80 years left on them were still difficult to sell and usually went for way, way less than equivalent properties that didn't have that blight on them.

Edited by The Ayatollah Buggeri

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In England at least, that's usually easier said than done, and often impossible.

I grew up in a two-masionette house with an absolute git of a ground landlord who was forever trying to extort money out of my parents; she claimed it was for repairs to communal areas of the property, but in fact it was almost always to upgrade her flat (and the work was always to be done by her friend the builder, doubtless under the radar of the VAT man). When the leasehold rules changed in the late '80s or early '90s to give leasehold OOs significantly enhanced protection, guess what? There was an exemption for ground LLs who lived in the same building as the leaseholder. If you live in a block of flats and a majority of you there feel that you're being ripped off by the management company, you can collectively vote to buy the freehold out from under them. But where it's a smaller building with only one or two individual dwellings in it, and/or the ground LL actually lives in it, the situation when my mother investigated it was that buying out the freehold is to all intents and purposes impossible. Furthermore, the LL can make buying a statutory lease extension so tortuous that it can easily end up costing you four figures in lawyers' fees. And even if you get one, you still have to pay ground rent; though the sum involved is usually nominal if there's no actual property management involved, e.g. maintaining the communal facilities of a block of flats. That is why even at the height of the boom, leasehold flats with significantly less than 70-80 years left on them were still difficult to sell and usually went for way, way less than equivalent properties that didn't have that blight on them.

Sadly, there are exceptions where there is a resident landlord. However, it's not particularly difficult to buy your freehold/lease extension. It just takes a bit of time and money (of course).

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There are too many vested interests and too many leasehold flats (how many have been built in the last 10 years?)

It should be a numbers game - in democracies - no?

It is an irrational, inefficient, anachronistic feudal relic.

Actually it is a national embarrassment. Foreigners laugh at it, and pity us for it. It is shameful really.

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It should be a numbers game - in democracies - no?

It is an irrational, inefficient, anachronistic feudal relic.

Actually it is a national embarrassment. Foreigners laugh at it, and pity us for it. It is shameful really.

Yep. I'm sure if we'd got rid of our aristocracy when the French did, the leasehold system would not be in place now.

Nevertheless, these freeholds are assets and in a democracy, you have to accept that they come with a price tag. What peeves me though is how much more expensive they are compared to pre 2006 when the freehold purchase/lease extension calculation was changed.

One consolation is right to manage which allows leaseholders to assume all management responsibilities for their freehold. This law was never enacted in Northern Ireland though - something at least to be grateful for.

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Yep. I'm sure if we'd got rid of our aristocracy when the French did, the leasehold system would not be in place now.

We missed that opportunity.

Though nowadays I would prefer a more peaceful solution. Just a vote in Parliament will do.

Nevertheless, these freeholds are assets and in a democracy

How?!

, you have to accept that they come with a price tag. What peeves me though is how much more expensive they are compared to pre 2006 when the freehold purchase/lease extension calculation was changed.

One consolation is right to manage which allows leaseholders to assume all management responsibilities for their freehold. This law was never enacted in Northern Ireland though - something at least to be grateful for.

"to be grateful"?! :huh:

"Oh thank you m'Lord! most greatful..." < meekly meekly backing away bowing and reversing >

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ground rents are usually very little.

most flats have" peppercorn rent" stipulated in them. i.e you own the landlord 1 peppercorn as ground rent every year :)

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ground rents are usually very little.

most flats have" peppercorn rent" stipulated in them. i.e you own the landlord 1 peppercorn as ground rent every year :)

So just abolish the silly thing then.

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So just abolish the silly thing then.

the reason why leaseholds exist is because its difficult to freehold buildings that are communal. if someones bath leaks upstairs through to your ceiling whos liable?

there are methods to share ownership such as commonhold, but there are pros and cons of each method of leasehold, freehold, commonhold.

e.g banks will rarely grant you a mortgage on a freehold flat, because they wont accept it as a security for your debt, due to the shared nature of your asset.

Edited by mfp123

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the reason why leaseholds exist is because its difficult to freehold buildings that are communal. if someones bath leaks upstairs through to your ceiling whos liable?

there are methods to share ownership such as commonhold, but there are pros and cons of each method.

e.g banks will rarely grant you a mortgage on a freehold flat, because they wont accept it as a security for your debt, due to the shared nature of your asset.

Most countries - including most (or all?) in the continent - don't have this leasehold malarkey, and they work just fine. Better than here actually! And they all have flats, and the land is shared ownership.

Their whole property market is much more rational, coz they are much more citizens' controlled than here, or less "aristocratically"/elite controlled than here. And this "serf's frame of mind" is the root cause of our problems.

The rentier classes are parasitic.

The UK banks would have to adapt to modernity. Aren't they so "innovative" in other areas?!

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commonhold makes more sense, and id assume thats how new flats will be sold in future.

for existing flats its difficult to change because of all the legal issues in getting everyone together - with new flats you can sort it all out at the beginning.

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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