Re:The Grenfell Tower inquiry is uncovering a major corporat...
by KaiserPro on Sunday December 06, 2020 @03:16PM
(#25326282)
The thing to point out here is that you must pay three things:
1) a one off fee for the actual lease, for a 125(typically but it can be 999 years for private leaseholds, and <10 for commerical property) year term. This is normally 10-70% of the going rate for a similar freehold property.
2) each year for the "ground rent" ie a "pepper corn" or nominal fee to the person who actually owns the building (this is nominally fixed at £1-100, but in some recent scams they are exponential)
3) "reasonable" maintenance. this is normally paid to either the council for a ex council house, or a management company. They may not be the same entity as the freeholder. You cannot be compelled to pay for "improvements" only reasonable upkeep.
Once you have a leasehold, it is tradeable like a freehold.
1) a one off fee for the actual lease, for a 125(typically but it can be 999 years for private leaseholds, and <10 for commerical property) year term. This is normally 10-70% of the going rate for a similar freehold property.
2) each year for the "ground rent" ie a "pepper corn" or nominal fee to the person who actually owns the building (this is nominally fixed at £1-100, but in some recent scams they are exponential)
3) "reasonable" maintenance. this is normally paid to either the council for a ex council house, or a management company. They may not be the same entity as the freeholder. You cannot be compelled to pay for "improvements" only reasonable upkeep.
Once you have a leasehold, it is tradeable like a freehold.