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Ground Rent - can I haggle?

  • 12-04-2021 8:05pm
    #1
    BinnionBenny
    Registered Users, Registered Users 2 Posts: 5 ✭


    Hi,

    I'm thinking of buying out the ground rent for my house. It's owned by a propery management company which has sent me a bill for about 4,000.

    Does anyone have experience in buying this out?
    Can I make an offer, for example? My budget is really only 2,000, but I'd like to get the freehold rights.

    The current company picked it up when the previous owner of the ground rights went out of business.

    So, can I make them an offer?

    Any help appreciated


Comments

  • #2
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,548 ✭✭✭Claw Hammer


    BinnionBenny wrote: »
    Hi,

    I'm thinking of buying out the ground rent for my house. It's owned by a propery management company which has sent me a bill for about 4,000.

    Does anyone have experience in buying this out?
    Can I make an offer, for example? My budget is really only 2,000, but I'd like to get the freehold rights.

    The current company picked it up when the previous owner of the ground rights went out of business.

    So, can I make them an offer?

    Any help appreciated
    Why bother, just go to arbitration.


  • #3
    athlone573
    Registered Users, Registered Users 2 Posts: 724 ✭✭✭athlone573


    May I ask why you want to buy out the ground rent?

    From my experience (as in the letters that appear in our letterbox) that 4000 quote is made up of something like :
    50 euro a year ground rent for the last 20 years since it was last paid,
    2000 euro being the formula value of all the future ground rents (multiplier is high as interest rates are low),
    1000 euro legal fees by the property management company.
    The annual ground rent will be detailed in summary form on your Folio which your solicitor may have sent you, or you can request from the property authority (the Land Registry) for a nominal fee.

    If you perform the buy out process yourself (via arbitration? ) I believe the legal fees can be lower but not the formula part.

    Anything more than seven years ago is statute barred, and they are unlikely to sue you for the seven years arrears(the 50 times 7 or whatever).


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