Ground Rent / Morgoed Estates Limited

[Actual]

I purchased a leasehold house last year. The purchase/sale was held up by Morgoed Estates because the previous owner had not paid the ground rent (£12 p.a.). I have just paid this years £12 fee, but included with the demand was an offer to buy out the ground rent for £600 (plus a £40 land registry fee). When I emailed Morgoed Estates and told them I thought £600 was a bit ridiculous (it represents 50 yrs worth of £12 payments, I'll be dead long before then!) they wouldn't budge.

 

My understanding is that ground rents of this nature were abolished by the Rentcharges Act 1977 and all of them will cease in the year 2037 (a mere 22yrs from now, I hope to still be alive then).

 

Morgoed Estates say that my ground rent is not covered by the Rentcharges Act 1977 as it is a 'leasehold interest'. Is this just bull or do they know something Google doesn't?

 

I don't mind paying the £12 a year, but I'd rather not have to deal with a company which others have not had good experiences with.

 

Sorry if this is in the wrong forum, it was hard to find the right one

[honeybee13]

Hello there.

 

I'll move you to the general legal forum and leave you a link to follow from the financial legal one.

 

The forum guys should be along later.

 

HB