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Lease Claims

Lease Claims

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Ground Rent Scandal

What is the Ground Rent Scandal?

If you purchase a leasehold property, you essentially enter into a long-term rental agreement where an external freeholder owns the land on which your property is built.

This means that you have to pay the freeholder an annual ground rent fee and seek their permission for any design changes you may wish to make. Initially, ground rent fees were as low as £1 per year for the property occupant: however, property developers began adding in fee doubling clauses to leasehold contracts in which the fee would double every decade.

With many leasehold properties having 999-year leases, this would inevitably lead to astronomical ground rents; as many banks are now refusing to grant mortgages against these properties, this renders them virtually unsellable.

If you are affected by the ground rent scandal, get in touch with us today to find out how we can help.

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Birmingham Office

1 Hagley Court South,
Waterfront East,
Level Street,
Brierley Hill,
West Midlands,
DY5 1XE

01384 889900

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Capital House,
12 Oxford Road,
Altrincham,
Cheshire,
WA14 2EB

0161 714 4520

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FS Legal LLP, registered office, 1 Hagley Court South, The Waterfront, Brierley Hill, West Midlands DY5 1XE (OC366452) is authorised and regulated by the Solicitors Regulation Authority under number 565776.
New South Law Ltd, registered office, Suite 3a, Anchor Springs, Duke Street, Littlehampton, BN17 6BP (10725076) is authorised and regulated by the Solicitors Regulation Authority under number 645781.
Nelsons Solicitors Limited, registered office, Pennine House, 8 Stanford Street, Nottingham NG1 7BQ (07219010) is authorised and regulated by the Solicitors Regulation Authority under number 536939