News article published on: 26th September 2017
Leasehold ground rents have attracted much attention as negligence claims against solicitors have risen sharply in the last 12 months. The claims are from purchasers of leasehold properties who seek compensation in relation to ground rents that they were never advised about when they purchased their property. The claims largely relate to new build properties which are sold with ground rents that continue to double overtime and as some mortgage companies are refusing to lend on such properties, they are largely becoming unsaleable.
The government proposes to deal with the position and has highlighted the problem in their consultation paper “Tackling unfair practices in the leasehold market“ where proposals are invited as to how to limit ground rents. However it is likely any changes brought in will only apply to new leases and therefore lawyers may still remain at risk for failure to advise in connection with such ground rents.
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