Relief for Hundreds as Leasehold Ground Rent Terms Revised:

Over 500 households are set to be freed from challenging leasehold contracts that subjected them to ground rent that doubled every 10 to 15 years, as reported by the Competition and Markets Authority (CMA).

These problematic contracts, initially set by major house-builders including Countryside, Crest Nicholson, Miller Homes, Redrow, Taylor Wimpey, and Vistry, were passed on to the current homeowners by eight different freehold companies.

The adjustment will revert the ground rent to the original amounts when the homes were first purchased, marking a significant relief for those impacted. This action brings the total to over 21,000 households that have been liberated from such burdensome leasehold terms since 2019. The stringent conditions previously imposed made it arduous for homeowners to sell their properties and risked their homeownership if they failed to keep up with escalating payments. Instances have been reported where leaseholders faced exorbitant bills and the threat of losing their homes over disputed charges.

George Lusty, interim executive director for Consumer Protection and Markets at the CMA, highlighted the positive impact of this development. He expressed satisfaction over the significant progress made in alleviating over 21,000 households from the strain of doubling ground rents and other leasehold difficulties. This initiative, involving more than 30 companies to date, aims to offer respite to those grappling with these and other financial pressures.

Written by Veera Josey, 14th March 2024

Source: The Standard