Ground rents are payable on leasehold properties in England and Wales, but not Scotland, which operates under a different legal system. As with all leasehold properties in England and Wales, ground rents are a condition of the lease for our apartments. They are set by PegasusLife at the outset of the development and are highlighted during the sales process to all customers.
We charge a reasonable ground rent so that we can maintain and look after all those parts of the developments that can’t be sold e.g. communal areas. Not only does this mean less hassle for our customers, it also enables us to keep costs down in other areas (e.g. apartment prices and service charges).
We do not build leasehold houses, the reason that Government has decided to look into ground rents. We make sure that ground rents are fair and do not increase at an unreasonable level. Our ground rents are fixed for the first 15 years after the initial purchase. The second ground rent review is on the 10th anniversary of the first rent review (25 years after the initial purchase is made).
The third - and any other future rent reviews - can only be made after another ten years (and on each ten year anniversary). Any changes to the rental will be in line with the Retail Price Index (RPI).
The level of ground rent reflects the size of the development and the level of service it provides. Our ground rents prices vary depending on the development, the number of bedrooms and location.