You are reading a single comment by @stevo_com and its replies.
Click here to read the full conversation.
-
All of the calculators I have used online with the value of the property set at the sale price in 2015 give a range of £5k to £8k for the premium. Not scientific, I concede that but the value of our flat has gone up quite a bit in that time and I am pretty confident that this is a low figure.
Our ground rent is £100 a year and we don't have any service charges so getting rid of it would only really be an admin saving more than anything (have to pay by cheque once a year). If the letter/offer makes no reference to rent I will ask that at the very least it is frozen at the current rate. I will not be paying it for 170 years.
Thanks for the response and advice, I really appreciate being able to write this out.
stevo_com
You need advice on what the premium would be if you went down the statutory route. If the answer is 'about 5k or more' then go for it. But without proper valuation advice, you can't assess how good that offer is. Bear in mind that if you go down the statutory route the rent gets reduced to a nominal peppercorn rent, and I can't see any reference to rent in the proposed terms. A small amount every year for 170 years ends up being worth quite a lot when capitalised in advance.