The problem of reviewable
ground rents on housing developments was illustrated locally in the last couple of years by the case of the Elba estate in Swansea.
"There are no service charges and residents will not face an increase in
ground rent.
that six years after purchasing her home she discovered her
ground rent fee would double every decade instead of every 25 years, as she had previously been informed by her conveyancer.
These days
ground rent is only payable if the landlord sends you a bill.
"Our
ground rents business is completely transparent and investors receive an exact picture of the health of the business they are investing in."
Many are occupied by tenants on long-term leases and are "
ground rents", meaning the council only owns the land.
Auctioneer Stuart Tullah commented that freehold
ground rents, life tenancy investments and garage blocks, are seen by many as a safe income producing haven in uncertain economic times.
Your solicitor can also check the seller is up-to-date with
ground rent payments."
Since then his estate has sent occasional bills for the
ground rent to Castlebar - where it owns property worth millions of euros - but they've been largely ignored.
And Motherwell are understood to receive
ground rent from Gretna on a match by match basis.
However, the
ground rent was set to increase based on a re-appraisal of the land in twenty years and the rent payments would likely have more than tripled at that time.