MP announces new industry pledge to protect leaseholders from unreasonable ground rents
On 28 March Communities Secretary, Rt Hon James Brokenshire MP announced a new industry pledge that will stop freeholders and property developers from inserting onerous clauses into Leases such as doubling ground rents every 10 years and extortionate legal fees.
This comes following the backlash from lenders in 2017 when it first came to light that freeholders were inserting these dirty ground rent clauses (you can read more on this in my previous blog here) and lenders such as Nationwide were refusing to lend on properties with these unreasonable clauses.
It is said that Taylor Wimpey and Barrett Homes amongst more than 40 other large property developers and freeholders have already signed this government backed pledge. The pledge obligates them to not only stop using these onerous clauses going forward but also to remove them from the Leases of leaseholders already affected.
The Communities Secretary, Rt Hon James Brokenshire MP, has said:
“Since becoming Communities Secretary, I have repeatedly made clear my ambition to end those exploitative and unfair leasehold arrangements that have no place in a modern housing market.”
“The new industry pledge – signed by leading freeholders and property developers – will further support existing and future leaseholders by protecting them from onerous fees. It’s great news that leading names such as Taylor Wimpey and Barratt Developments have already signed up to the pledge, and I want to see others who have not yet signed up do the right thing.”
A list of the signatories that have signed this pledge can be found on the government website.
If you have been affected by an unreasonable ground rent clause please do get in touch with our specialist leasehold services team who would be more than happy to assist you.
*Disclaimer: The information on the Anthony Gold website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied.*