Ground Rent Scandal
Posted in Conveyancing on 6th Jan 2022
The Snowball Effect for Leaseholders
Consumer group Which? released a damning report on new-build leaseholds and revealed that some developers include doubling ground rent clauses in sales contracts. These may be onerous if they are reviewed on a regular basis, such as every 5 to 10 years. Although the charge may sound minimal when a homeowner first takes ownership of the lease, a doubling clause may result in a considerable amount later down the line. As a result, banks may refuse to lend on such property, trapping owners in a home they cannot...
The Leasehold Reform (Ground Rent) Bill
Posted in Professional Negligence on 7th Dec 2021
Too little too late for existing leaseholders
On 29 November 2021, the Leasehold Reform (Ground Rent) Bill completed its second reading in the House of Commons. The bill will ban freeholders from charging ground rent to leaseholders in some new leasehold agreements, such as newly built residential properties, if it is enacted into a law. However, the bill was criticised for failing to protect the current 4.5 million leaseholders, some of whom are unable to sell their home due to onerous ground rent increases.
During the Parliamentary debate, many...
