11 Jan 2018 the Retail Prices Index (RPI), the Consumer Prices Index (CPI) and the as mortgage interest, dwelling insurance and ground rent, local taxes, 29 Jun 2017 Consumer Price Index (CPI). As a rule of thumb, rents are usually increased by 8 % to 10% annually, but Pieter Janse van Rensburg, franchisee 1 Jan 2017 Variable increases are typically tied to an index that tracks the rate of inflation, such as the Consumer Price Index (CPI). The timing of increases 19 Mar 2013 rent = highest market rent; RPI rent = increases with retail price index; Side by side/geared rent = between landlord and developer, ground 16 Aug 2017 original sale price, with increases linked to the retail prices index (RPI). It is now common for ground rents to start at material levels with lease Find Timely and Reliable Transaction Data with Unique Intelligence on Market Pricing, Capital Flows and Investment Trends. Buyers of those houses failed to appreciate – or their solicitors failed to advise them – that a starting yearly ground rent of £100 might sound reasonable enough, but were it to double every 10 years over the course of a 999-year lease, the exponential function means that in 50 years’ time, the yearly rent would reach £3,200; in 100 years, £102,400; and by the end of the term of the lease, many millions of pounds per year.
15 Jan 2018 The Ground Rent Review Assistance Scheme is open to all homeowners who or vary the doubling ground rent clause to a Retail Price Index linked ground rent clause. This means ground rent will increase in line with RPI.
Every year I have been paying a whopping £200 ground rent for an apartment that is now worth only £55,000 on top of maintenance charges of almost £70 per month and not getting much for it. I have now had a letter saying that the ground rent is increasing in line with the Retail Price Index to £274.77 that's a 37.08% increase. For Clients and visitors to my website, I provide a Retail Price Index and Rent Calculator. Index figures since 1974 are provided. The calculator is free to use, no obligation to use my services. Although my website is about commercial property, residential property landlords may find my RPI and Rent Calculator useful. • Inflation measures (e.g., retail price index or consumer price index) • Fixed investment (e.g., doubling) • Open market review (upward in line with the increase in capital value of the property) While ground rents can provide some inflation protection for insurers with inflation-linked liabilities, the payments Proposition: It is not safe to grant leases under which the rent is reviewed at intervals solely by reference to the Retail Prices Index (or the Consumer Prices Index). Volatility in market rents has in recent years caused landlords of commercial property to look at alternative means of rent review, one of which is to require reviews at regular I’m stuck in the leasehold trap and my ground rent is set to double every 10 years. in the lease to a more reasonable mechanism such as one linked to the increase in the Retail Prices Index. Ground Lease Valuation. Ground lease valuation is not unlike the valuation of any other lease or cash flow stream. Since there is a clearly defined lease term, lease rate, escalation schedule, and terminal value, a projection of these cash flows can be created and then discounted to determine a present value. Index Retail Prices Calculator. Here you can download the Index of Retail Prices Calculator. Rate of Inflation.xls
Find Timely and Reliable Transaction Data with Unique Intelligence on Market Pricing, Capital Flows and Investment Trends.
Fixed or readily established ground rent. Rent increases are usually fixed in terms of amount and dates, throughout the term, which creates certainty for the leaseholder. Some leases use a formula or refer to an index such as the Retail Price Index (RPI).