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Eight businesses commit to remove terms that double ground rent

15 March 2024

The Competition and Markets Authority (“the CMA”) has again intervened to free more leaseholders from ground rent provisions that lead to difficulties with selling and remortgaging.

This means that over 500 households will no longer be subject to terms causing their ground rents to double every 10 or 15 years.

The further action from the CMA means that eight additional firms will now remove such problematic clauses arising from their leases.

The businesses involved, which include investment firms, bought freeholds originally owned by developers Countryside, Crest Nicholson, Miller Homes, Redrow, Taylor Wimpey and Vistry.

All affected leaseholders will now see their ground rents return to the amount charged when the property was first sold, and it will not increase over time.

George Lusty, Interim Executive Director for Consumer Protection and Markets, said

Given the Leasehold and Freehold Reform Bill outlines proposals to cap existing ground rents, the CMA’s consumer protection law enforcement work in the leasehold sector is now largely at an end.

The eight freeholders, and the developers who originally owned those freeholds, are:

Current freeholder  Developer
Abacus Land 1 (Holdco 1) Limited  Countryside
Abacus Land 3 Limited and Abacus Land 4 Limited  Miller Homes
Adriatic Land 3 Limited  Redrow
Island Apartments Freehold Limited  Taylor Wimpey
Madison Close Freeholders Limited Taylor Wimpey
Plaza 2 Surbiton Limited Taylor Wimpey
RMB 102 Limited Crest Nicholson
Space in London Limited Vistry

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