More than 40 property developers and freeholders have signed a government-backed pledge to stop leaseholders being trapped in unfair and costly deals.
The new industry pledge, which includes signatories Aviva, Barratt, Taylor Wimpey and PGIM, commits to doing away with onerous “doubling clauses” that can result in ground rents soaring exponentially over a short period.
Over the past decade developers have been selling leasehold properties with high fees and spiralling ground rents attached.
As a result of the terms of the leases, unsuspecting homebuyers could end up paying large bills or face issues securing a new mortgage or selling their property. In the worst-case scenarios, the ground rent paid by the leaseholder doubles every 10 years.
Some freeholders who have signed the pledge have also committed to changing the terms of leases for those who have already bought their homes.
Plus, a number of managing agents have put their names down, vowing to “act fairly and transparently in their dealings with leaseholders”, according to an announcement today from the Ministry of Housing, Communities and Local Government.
Communities secretary James Brokenshire said: “The new industry pledge, signed by leading freeholders and property developers, will further support existing and future leaseholders by protecting them from onerous fees.
“It’s great news that leading names such as Taylor Wimpey and Barratt Developments have already signed up to the pledge, and I want to see others who have not yet signed up do the right thing.”
Pledge signatories include:
- Aquinna Homes
- Association of Residential Managing Agents
- Aviva Investors Global Services
- Barratt Developments
- Bellway
- Bewley Homes
- Bovis Homes
- Churchill Retirement
- Consensus Business Group
- Countryside Properties
- Croudace Homes Group
- Davidsons Developments
- E&J Estates
- Estates & Management
- Fairview New Homes
- Galliford Try
- Ground Rents Income Fund
- Hill
- Home Builders Federation
- Homeground Management
- Inland
- Landmark Investments
- Lioncourt Homes
- Long Harbour
- Mainstay Group
- McCarthy & Stone
- Mears New Homes
- Miller Homes
- Millgate Developments (part of the Countryside Group)
- Morris Homes
- Nicholas King Homes
- Octagon Developments
- PegasusLife Group
- Persimmon
- PGIM Real Estate
- Redrow Homes
- Royal Institution of Chartered Surveyors
- Spitfire Bespoke Homes
- St Modwen Homes
- Stewart Milne Group
- Strata
- Taylor Wimpey
- Telford Homes
- Wallace Partnership Group
- Wates Developments
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