diff --git a/rhodecode/apps/repo_group/views/repo_group_settings.py b/rhodecode/apps/repo_group/views/repo_group_settings.py
--- a/rhodecode/apps/repo_group/views/repo_group_settings.py
+++ b/rhodecode/apps/repo_group/views/repo_group_settings.py
@@ -169,7 +169,7 @@ class RepoGroupSettingsView(RepoGroupApp
 
             # use the new full name for redirect once we know we updated
             # the name on filesystem and in DB
-            new_repo_group_name = schema_data['repo_group_name']
+            new_repo_group_name = schema_data['repo_group']['repo_group_name_with_group']
 
             h.flash(_('Repository Group `{}` updated successfully').format(
                 old_repo_group_name), category='success')
diff --git a/rhodecode/model/validation_schema/schemas/repo_group_schema.py b/rhodecode/model/validation_schema/schemas/repo_group_schema.py
--- a/rhodecode/model/validation_schema/schemas/repo_group_schema.py
+++ b/rhodecode/model/validation_schema/schemas/repo_group_schema.py
@@ -32,6 +32,11 @@ def get_group_and_repo(repo_name):
         repo_name, get_object=True)
 
 
+def get_repo_group(repo_group_id):
+    from rhodecode.model.repo_group import RepoGroup
+    return RepoGroup.get(repo_group_id), RepoGroup.CHOICES_SEPARATOR
+
+
 @colander.deferred
 def deferred_can_write_to_group_validator(node, kw):
     old_values = kw.get('old_values') or {}
@@ -178,6 +183,7 @@ class GroupType(colander.Mapping):
          parent_group_name,
          parent_group) = get_group_and_repo(validated_name)
 
+        appstruct['repo_group_name_with_group'] = validated_name
         appstruct['repo_group_name_without_group'] = repo_group_name_without_group
         appstruct['repo_group_name'] = parent_group_name or types.RootLocation
         if parent_group:
@@ -271,6 +277,14 @@ class RepoGroupSettingsSchema(RepoGroupS
         appstruct = super(RepoGroupSchema, self).deserialize(cstruct)
         validated_name = appstruct['repo_group_name']
 
+        # because of repoSchema adds repo-group as an ID, we inject it as
+        # full name here because validators require it, it's unwrapped later
+        # so it's safe to use and final name is going to be without group anyway
+
+        group, separator = get_repo_group(appstruct['repo_group'])
+        if group:
+            validated_name = separator.join([group.group_name, validated_name])
+
         # second pass to validate permissions to repo_group
         second = RepoGroupAccessSchema().bind(**self.bindings)
         appstruct_second = second.deserialize({'repo_group': validated_name})
diff --git a/rhodecode/tests/models/schemas/test_repo_group_schema.py b/rhodecode/tests/models/schemas/test_repo_group_schema.py
--- a/rhodecode/tests/models/schemas/test_repo_group_schema.py
+++ b/rhodecode/tests/models/schemas/test_repo_group_schema.py
@@ -60,6 +60,7 @@ class TestRepoGroupSchema(object):
         assert schema_data['repo_group'] == {
             'repo_group_id': None,
             'repo_group_name': types.RootLocation,
+            'repo_group_name_with_group': u'my_schema_group',
             'repo_group_name_without_group': u'my_schema_group'}
 
     @pytest.mark.parametrize('given, err_key, expected_exc', [
@@ -96,6 +97,7 @@ class TestRepoGroupSchema(object):
         assert schema_data['repo_group'] == {
             'repo_group_id': test_repo_group.group_id,
             'repo_group_name': test_repo_group.group_name,
+            'repo_group_name_with_group': full_name,
             'repo_group_name_without_group': u'my_schema_group'}
 
     def test_deserialize_with_group_name_regular_user_no_perms(