Do you own a property under a long lease but with onerous ground rent provisions?
If so you may be entitled to bring a claim against your conveyancing solicitors who should have advised you about them.
What is the problem?
Many developers and builders recently sold new properties, often to first time buyers under the right to buy scheme, under long leases and not freeholds, where the lease provides for the ground rent to increase considerably over time, even double every decade.
These properties are now coming onto the market and potential buyers and their solicitors are spotting the problems and refusing to proceed. In these circumstances, it is easy to see that unless the lease terms relating to ground rent are changed, the property could be unsellable.
Lenders too will be concerned: it is questionable whether conveyancing solicitors acting for the buyers of the new build properties, who would have also acted for the buyers' lenders, would have complied with their obligations under the Council of Mortgage Lenders handbook as these service charge provisions would fall foul of what was acceptable. Their onerous terms would reduce the value of the lender's security for the mortgage.
We are seeing an increasing number of enquiries from owners of properties held under long leases where they have these ground rent problems and we are advising that they may have a claim against their negligent conveyancing solicitors for compensation. If the developer or builder who owns the freehold of the property refuses to agree a variation of the lease to change the terms relating to rising ground rent, and the property remains unsellable, that compensation could be considerable.
If you bought a property from a developer or builder and the lease provides for unacceptable levels of rising ground rent, then you may have a claim, so please contact our expert professional negligence solicitors for an initial, no obligation discussion.
See If You Can Claim Now
Simply call our specialist professional negligence solicitors on 0330 134 2582 or e-mail us at firstname.lastname@example.org to discuss whether you have a claim.