Buying out the Rent Charge on a rental property
Property Investment

2,184 Thanks
4,402 Posts
1 year ago

Hello colleagues, has anyone got experience of buying out a rentcharge for a one off price..including the letter says 'all legal costs plus a final adjustment rent; with nothing further to pay. Quote valid for 35 days. Price quoted £132.77.

Basically surprised by new demand for rentcharge of £4 pa on a modest inner-city terrace that I've owned for 18 years. Obviously the rentcharge has been sold to an invester [ MCS Property;based in Exeter].

Letter asks for rentcharge [ 13/2/19-24/3/20] of £4. A modest sum which will amount to £16 when I downsize further in 4 years time & selling this HMO.
I could hold out paying that modest sum, or grasp this offer to purchase the rentcharge for £132.77?

So, how useful is it [or how restrictive] to have a rentcharge registered against the property. I can't recall it bothered me,if it was ever mentioned 19 years ago.
Has anyone experienced paying a modest rentcharge on their properties.
I pay a £6 rentcharge pa on two other rentals. They are regularly sold on to other investment outfits. That triggers an offer to me to purchase the rentcharge. Those offers have been £300-£500 & prohibitive. Therefore for those I continue paying the £6's annually.

Whilst this offer is modest, it may be a honey-trap of hidden charges that racks up the original quote of £132. This is why I'm asking for your experiences. I wouldn't ignore the demand for £4, as its not worth my admin time, or nuisance value not to pay this.

Please Login

You must be logged in to participate in our forums, to continue please login below.

Not a member? From only £75 you can join in the discussion and get access to member's only resources and services join now.