Doubling Ground Rent
Home owners who own leasehold property with doubling ground rent clauses have found it increasingly difficult to keep up with payments as the ground rent increases over time and becomes unmanageable. Mortgage companies have become very wary of lending in respect of these properties as a result. This has caused homeowners within certain housing developments to become trapped with an increasing ground rent and no way to sell their property.
Taylor Wimpey has recently announced that they will be assisting their customers who currently hold long leases with doubling ground rent clauses. The Ground Rent Review Assistance Scheme is open to all homeowners who purchased their property direct from Taylor Wimpey and still own the property. Taylor Wimpey has negotiated with the owners of the freeholds and agreed changes to the ground rent clauses within the leases. It is understood that the ground rent clauses will be varied to increase in line with Retail Price Index, rather than the more onerous doubling clauses.
A Deed of Variation will be used to change or vary the doubling ground rent clause to a Retail Price Index linked ground rent clause. This means ground rent will increase in line with RPI. The variation will also help homeowners when they want to go on to sell their home, as at the moment a lot of mortgage companies won’t lend to prospective purchasers due to the difficulty around doubling ground rent.
If you are a home owner who purchased from Taylor Wimpey you can check whether the Ground Rent Review Assistance Scheme is open to you. Reports suggest that Taylor Wimpey have set aside £130 million for the scheme which will be used to contribute to the legal fees required to carry out the Deed of Variation.
You can find out of you qualify under the Taylor Wimpey Scheme by completing their questionnaire on their website. forms.taylorwimpey.co.uk/
Here at Chafes Hague Lambert our Property Services team have the expertise to assist you with a Deed of Variation and the purchase of your freehold.
For more information call Sarah Waddington on 01625 587 433 or email at firstname.lastname@example.org