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Your solutions to the ground rent scandal

Your solutions to the ground rent scandal

Solicitors that can assist in the ground rent scandal

Have you purchased a leasehold interest in a new build property which has a ground rent that doubles every 5 or 10 years? We can assist and advice you.

A known developer and other household names have been identified as selling new build properties which contain these escalating ground rent clauses. This has left many home owners unable to sell their properties and/or obtain secured loans against their properties when this issue can have a negative impact on property values.

Your solutions as victims of ground rent scandal

Certain developers and/or certain freeholders who subsequently purchased the freehold from the original developer have set aside substantial funds to set up voluntary schemes to:

  1. Amend the existing ground rent clauses; and
  2. Pay a contribution towards the home owner’s legal costs in order that they can take crucial independent legal advice before agreeing any Deed of Variation. In some cases we do not consider the alternative proposed amendments are ideal and improved terms should be negotiated.

If the home owner’s solicitor did not advise on the escalating ground rent clause, the home owner may also have the option of pursing a claim for damages for professional negligence. For example, a home owner may be able to recover from the solicitors:

  1. Any further and reasonable loss following the agreement with the developer and/or current freeholder to amend the ground rent clause; and
  2. Any reasonable sums for legal costs that the home owner paid its solicitor to advise on the amendment of the ground rent term which exceeded the developer or freeholder’s contribution.

If this matter affects you and you would like to discuss with us then please contact:

Ewen Sharpe on 0161 615 0682 or email

Allan Kornbluth on 0161 615 0654 or email

This blog was written by:  Polly Hill