When purchasing a property, it’s important to take note of clauses that mention an increase in ground rent. While the Government has announced that it will put an end to this, there has been a lack of clarity over leases that are currently running.
Responding to a reader’s question in The Times, our partner Simon Painter, explains that individuals in this situation should query the rising ground rent. In recent years, developers and housebuilders have granted leases on both flats and houses with ground rents that are high and will increase significantly over time. This can consequently have an impact on both the value of the property now and also its saleability in the future. Simon explains that any owners of leasehold properties with an onerous ground-rent clause may need to seek legal advice.
The full article is available to subscribers in The Times.