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Currently it is unfortunately the reality of newer flats, but hopefully there will be some reform in the future, particularly around ground rent.
It's worth checking if buildings insurance is included in the service charge as that was separate in my old flat and added another £3-500 per year onto our totals, i think we were paying about 3.5k per year for ground rent, service charge and buildings insurance.
mustardbeak-
Building insurance is included in the service charge which is good.
@EstelleGetty from what I’ve told the lift getting repaired has contributed to the increases. The building is only 5yrs old so we’d be hoping anything major would be covered by the building warranty. There is currently no sink fund so we are at risk of something unexpected. No issues with cladding.
Solicitor gave his honest opinion saying that he felt that it wasn’t a good investment, I think this is mainly from the point of view of it being potentially hard to sell in the future. Mainly due to new flats now all having 0 ground rent.
Really tricky spot, the thought of pulling out and finding somewhere new to rent in the current market is scary too haha
haveo
Mid way through a flat purchase in London and have kind of gotten cold feet while reviewing the terms of the ground rent and also service charges.
First up both are more than what we were initially told by the estate agent. Ground rent is £475pa, we were told £425pa, and service for the last year is £3200+, we were told it was around £2000pa. Realistically we can afford it but it really adds to our monthly outgoings.
Going the quick maths on the ground rent which is to increase every 10yrs in-line with RPI, that sets us up for an increase in 5yrs time. Using todays RPI we are already looking at a 35% increase with 5yrs of future RPI to add on top of that. Go ground rent will be above £650pa in 5yrs time.
How scared should we be and is this just the reality of buying a flat built in the last 5yrs? I’m worried I’m gunna get fucked over when it comes to selling.