CMA frees hundreds more leaseholders from costly contracts

Over 500 households freed from problematic ground rent terms after further CMA (Competition and Markets Authority).

Following further action, 8* additional firms will now remove problematic clauses from their leasehold contracts – meaning over 500 households will no longer be subject to terms that cause their ground rents to double in price.

These terms, which kick in every 10 or 15 years, can leave people trapped in homes they cannot sell or mortgage, and their property rights can be at risk if they fall behind on payments.

LISTED HERE ARE THE 8 FREEHOLDERS AND DEVELOPERS WHO ORIGINALLY OWNED THOSE FREEHOLDS

The companies involved, which include investment firms, bought freeholds originally owned by housing developers Countryside, Crest Nicholson, Miller Homes, Redrow, Taylor Wimpey, and Vistry, and continued to use the problematic contract terms at the expense of leaseholders.

All affected leaseholders will now see their ground rents return to the original fee amount – i.e. the amount charged when the property was first sold – and will not increase over time.

George Lusty, interim executive director for consumer protection and markets, said: “Over the past 5 years, 21,000 households have been freed from issues such as costly doubling ground rents.

“We hope those affected by this update can breathe a little easier knowing they won’t have to struggle against this type of rising fee anymore – particularly when many are already grappling with high costs elsewhere.”