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Clarke & Son Blog

CMA provides Hope for Leaseholders

Some good news for leaseholders was announced by the Competition and Markets Authority (CMA) on the 22nd December. They have come to an agreement with Taylor Wimpey who have agreed to amend all leases where they are a freeholder so that ground rents will no longer double every ten years. The rents will stay the same as when the leases were originally granted and not increase.  If Taylor Wimpey have subsequently sold the lease, they will help to get the ground rent increases removed at no cost to the leaseholder.  The CMA said:

“Taylor Wimpey will also remove terms which had originally been ground rent doubling clauses but were converted so that the ground rent increased in line with the Retail Prices Index (RPI). The CMA believes that the original doubling clauses were unfair terms and should therefore have been fully removed, not replaced with another term that increases the ground rent.”   

This announcement only affects Taylor Wimpey Leases, but the CMA have already reached agreements with Countryside and Persimmon and say that they are still investigation Barratt Developments, Abacus Land and Adriatic Land. If you own a Taylor Wimpey Lease with a doubling ground rent, or one where the rent has been changed to be in accordance with the RPI, please contact us so that we can advise you on your options to have the lease amended.

If you would like to speak to our team about any residential property matters please call 01256 320555 or email mail@clarkeandson.co.uk.

 

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