FINAL OFFER BREAKDOWN
At the Leaseholders Meetings held at the Con’ Club Gowerton on Tuesday 7th and Wednesday 8th April Residents asked if the Action Group could provide a breakdown of the City and County of Swansea’s (CCS) offer.
We hope what we have put together below helps you see the benefits of the concessions we have been able to negotiate.
Please remember these figures are only an indication. Individual charges will probably vary depending on circumstances
Please do not send your forms directly to the Council if you want to take advantage of the discounted legal fees we have arranged.
We will post instructions on how to submit your forms in the next few days. Please keep watching Facebook and the Blog
Annual Ground Rent: £400.00
Ground rent will be fixed for the period of the lease. There will not be any further rent reviews every 25 years.
This will require a Deed of Variation for which the CCS’s legal fees will be £500.
We have today been able to agree with a local firm of Solicitors a standard charge of £50 for Bulk Purchase and also Deed of Variation
If you wish to instruct your own Solicitor the costs would normally be in the region of £350.
Freehold Purchase:
For those who wish to Purchase their Freehold we have also negotiated additional savings:
CCS will waive the increase in annual ground rent for those who agree to purchase £400.00 minus either £50.00 or £75 (Copper Meadow or Porth Y Waun)
For Example (based on Copper Meadow for simplicity):
You agree to purchase your Freehold and you complete in July 2015 then you would save:
April 2014 to April 2015 = £350 (£400 - £50)
April 2015 to July 2015 = £87.50 (£350 / 4)
CCS will also discount their legal fees for Bulk Purchase from the standard £900 to £300.00.
We have also negotiated discounted legal fees with a firm of local solicitors at a rate of £50.00
A potential saving of £400+
It is important to remember that CCS has only agreed to the concessions listed above if you submit your request to purchase your Freehold within the set timescales.
The Freehold once purchased will be registered at the Land Registry in tandem with your Lease, by this method there will be reduced Land Registry costs.
Those who accept the £400 ground rent increase and request to purchase their freehold at a later date will not receive any concessions
The illustration below shows the savings available if you take advantage of the bulk purchase concessions we have negotiated.
(Ground Rent Based on One Year only)
Delay Purchase Bulk Purchase
Freehold Purchase:
Property Type
Terraced £6500 £6500
Semi Detached £6750 £6750
Detached £7000 £7000
Annual Ground Rent : £400pa £50
Deed of Variation (Council): £500 £0.00
Council Legal Fees: £900 £300
Residents own Solicitor: £350/50 £50
Land Registry: £46 £46
Costs: (In addition to the Freehold Price above £2196.00 or £1846.00 £446.00
We have used the freehold purchase prices negotiated with CCS for both calculations but there is no guarantee that CCS will not review these at a later date
In all cases there may be some other payments required dependant on individual situations (adding to your mortgage etc)
Deferred Payment:
The CCS have stated that they will agree a deferred payment on the basis of a charge on your property for those Leaseholders who cannot raise the necessary funds to Purchase their Freehold.
This will be subject to a means test and the exact details are yet to be finalised.
Fixed Rate Leaseholders:
The Current terms of this lease is that it will continue to be subject to a rent review every 25 years with the increase being based on the increase in RPI (Retail Price Index) over the preceding 25 years.
Fixed Rate Leaseholders have the option of keeping this lease or changing it to the £400pa lease which is fixed for the remaining term of the lease. We believe this will be backdated to 1st April 2014. (This removes the risk of further large rises). This will be achieved by Deed of Variation.
The cost of this Deed of Variation will be CCS legal fees of £500 plus your own Solicitors costs which are normally in the region of £350
You can however take advantage of the Bulk Purchase charge of £50 we have agreed with a local firm of Solicitors
Fixed Rate Leaseholders (£250) will also have the opportunity to Purchase their Freehold at a fixed price of £5000
Delay Purchase Bulk Purchase
Freehold Purchase:
Property Type
£250 Fixed Rate £5000 £5000
Annual Ground Rent : £400 or £250 £250
Deed of Variation (Council): £500 £0.00
Council Legal Fees: £900 £300
Residents Solicitor: £350/£50 £50
Land Registry: £46 £46
Costs: (In addition to the Freehold Price above) £2196.00 to £1646.00 £646.00
We have used the freehold purchase prices negotiated with CCS for both calculations but there is no guarantee that CCS will not review these at a later date
In all cases there may be some other payments required dependant on individual situations (adding to your mortgage etc)
We hope what we have put together below helps you see the benefits of the concessions we have been able to negotiate.
Please remember these figures are only an indication. Individual charges will probably vary depending on circumstances
Please do not send your forms directly to the Council if you want to take advantage of the discounted legal fees we have arranged.
We will post instructions on how to submit your forms in the next few days. Please keep watching Facebook and the Blog
Annual Ground Rent: £400.00
Ground rent will be fixed for the period of the lease. There will not be any further rent reviews every 25 years.
This will require a Deed of Variation for which the CCS’s legal fees will be £500.
We have today been able to agree with a local firm of Solicitors a standard charge of £50 for Bulk Purchase and also Deed of Variation
If you wish to instruct your own Solicitor the costs would normally be in the region of £350.
Freehold Purchase:
For those who wish to Purchase their Freehold we have also negotiated additional savings:
CCS will waive the increase in annual ground rent for those who agree to purchase £400.00 minus either £50.00 or £75 (Copper Meadow or Porth Y Waun)
For Example (based on Copper Meadow for simplicity):
You agree to purchase your Freehold and you complete in July 2015 then you would save:
April 2014 to April 2015 = £350 (£400 - £50)
April 2015 to July 2015 = £87.50 (£350 / 4)
CCS will also discount their legal fees for Bulk Purchase from the standard £900 to £300.00.
We have also negotiated discounted legal fees with a firm of local solicitors at a rate of £50.00
A potential saving of £400+
It is important to remember that CCS has only agreed to the concessions listed above if you submit your request to purchase your Freehold within the set timescales.
The Freehold once purchased will be registered at the Land Registry in tandem with your Lease, by this method there will be reduced Land Registry costs.
Those who accept the £400 ground rent increase and request to purchase their freehold at a later date will not receive any concessions
The illustration below shows the savings available if you take advantage of the bulk purchase concessions we have negotiated.
(Ground Rent Based on One Year only)
Delay Purchase Bulk Purchase
Freehold Purchase:
Property Type
Terraced £6500 £6500
Semi Detached £6750 £6750
Detached £7000 £7000
Annual Ground Rent : £400pa £50
Deed of Variation (Council): £500 £0.00
Council Legal Fees: £900 £300
Residents own Solicitor: £350/50 £50
Land Registry: £46 £46
Costs: (In addition to the Freehold Price above £2196.00 or £1846.00 £446.00
We have used the freehold purchase prices negotiated with CCS for both calculations but there is no guarantee that CCS will not review these at a later date
In all cases there may be some other payments required dependant on individual situations (adding to your mortgage etc)
Deferred Payment:
The CCS have stated that they will agree a deferred payment on the basis of a charge on your property for those Leaseholders who cannot raise the necessary funds to Purchase their Freehold.
This will be subject to a means test and the exact details are yet to be finalised.
Fixed Rate Leaseholders:
The Current terms of this lease is that it will continue to be subject to a rent review every 25 years with the increase being based on the increase in RPI (Retail Price Index) over the preceding 25 years.
Fixed Rate Leaseholders have the option of keeping this lease or changing it to the £400pa lease which is fixed for the remaining term of the lease. We believe this will be backdated to 1st April 2014. (This removes the risk of further large rises). This will be achieved by Deed of Variation.
The cost of this Deed of Variation will be CCS legal fees of £500 plus your own Solicitors costs which are normally in the region of £350
You can however take advantage of the Bulk Purchase charge of £50 we have agreed with a local firm of Solicitors
Fixed Rate Leaseholders (£250) will also have the opportunity to Purchase their Freehold at a fixed price of £5000
Delay Purchase Bulk Purchase
Freehold Purchase:
Property Type
£250 Fixed Rate £5000 £5000
Annual Ground Rent : £400 or £250 £250
Deed of Variation (Council): £500 £0.00
Council Legal Fees: £900 £300
Residents Solicitor: £350/£50 £50
Land Registry: £46 £46
Costs: (In addition to the Freehold Price above) £2196.00 to £1646.00 £646.00
We have used the freehold purchase prices negotiated with CCS for both calculations but there is no guarantee that CCS will not review these at a later date
In all cases there may be some other payments required dependant on individual situations (adding to your mortgage etc)
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