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You provide us with the authority to obtain your file from the solicitors who acted for you in the purchase of your property.
We review the file and determine the legal issues involved.
If we can proceed we will inform you and offer you a “No Win / No Fee” contract.
Do not miss out on your chance of financial compensation.
If your lease contains onerous ground rent clauses which allow the ground rent to double every 5 or 10 years, and you were not advised of this by your conveyancing solicitors, you may be entitled to compensation.
What is a leasehold property?
When a property is bought as leasehold, the purchaser only owns the house, not the land which it is built on. The land is owned by the Freeholder, who retains the lease; this means that the purchaser has to pay the ground rent per annum and needs the Freeholders permission if they wish to make any changes to the property. The title of the property then returns to the Freeholder when the lease ends.
Problems selling leasehold properties
Many purchasers of leasehold properties find that they are unable to sell them because some lenders will not grant mortgages on homes with excessive ground rent clauses.
Problems with leasehold properties
Previously, leasehold properties were mainly flats and the purchaser would pay a nominal ground rent to the freeholder, sometimes as little as £1 per annum. This changed when developers began selling houses with leaseholds, with some setting ground rents of £200 – £400 per annum, with clauses which allowed this amount to double every 10 years.
Some purchasers of leasehold properties are also being charged significant sums just for consent to add a conservatory. Another issue is that the original Freeholders can sell on the freehold to a third party, who can then increase the cost of it to make more of a profit. It is estimated that around 100,000 purchasers are stuck with increasing ground rents.
Is any action being taken?
The Government has proposed a ban on the sale of houses as leasehold in the future, for ground rent to be cut to zero and also wants to see more compensation to help purchasers who have been affected, although many feel that these plans do not go far enough.