Our residential property team at Lanyon Bowdler is seeing an increase in calls from concerned homeowners over the ground rent review mechanisms in their leases and how they may be affected by rent increases going forward. If you have an enquiry relating to a ground rent review, please complete our online enquiry form.
The spike in interest follows the decision by Taylor Wimpey to introduce a Ground Rent Review Assistance Scheme aimed at helping those people who bought their leasehold property (house or apartment) from the company with a clause meaning their ground rent doubles every 10 years.
This practice has meant homeowners encounter difficulties in selling their homes and mortgage lenders are unwilling to sign off on such deals where these particular Ground Rent Reviews apply.
A ground rent which doubles every 10 years has the potential to be very costly in the future and effectively means the property is unmarketable due to the lenders unwillingness to lend where they apply.
Taylor Wimpey says the introduction of the scheme comes after an extensive review and will help customers transfer to an alternative lease structure whereby the company will cover their costs in respect of the Deed of Variation.
It is intended that this will basically vary the terms of the current agreement into a far more satisfactory arrangement for homeowners. While anything agreed will depend on the freeholder it is anticipated the more favourable terms will be arrived at with reference to the Retail Price Index (RPI).
This would be more acceptable to mortgage lenders and ensure an easier path when it comes to selling your home.
If you are locked into one of these onerous leases with Taylor Wimpey, or another developer, and considering what you need to do next, the Ground Rent Review Assistance Scheme requires you meet certain criteria:
If you decide to take up the option offered by the scheme you will need expert legal advice. Our residential property team at Lanyon Bowdler has a wealth of experience over many years advising and acting for clients buying and selling property. The team is already advising clients going through the Taylor Wimpey Ground Rent Review Assistance Scheme.
We can talk you through the process and keep you fully informed at every stage of the scheme through to its successful completion. You can feel confident about leaving the matter in our hands in the knowledge we will always act in your best interests.
The SRA requires us to give indicative prices for limited types of work, this includes residential property services. For more information please click here.
If you would like to discuss the process further contact the team at Lanyon Bowdler, complete our online enquiry form and someone will be in touch.