Quiz - how well do you understand your lease?
Understand the key things you should know about your lease. If you are a purchaser, this can help make sure your solicitor has covered all of these points and explained them clearly to you.
When the lease is first issued the rent that the leaseholder pays is generally calculated at 3% of the part owned/retained by the landlord.
For example if the property is worth £100,000 and the landlord’s share is 50%, the rent paid by the leaseholder will be 3% of the share held by the landlord.
The rent will be; 3% of £50,000 which equals £1,500 per year or £125 per month. The lease will also provide that the rent will increase every year typically by a specified percentage above the upward movement of the Retail Price Index (RPI).
More information you might find useful:
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