Property News · November 19, 2016

New-build ground rent scandal could spark legal battles


With thousands of homebuyers caught out by rapidly rising rents, the solicitors they used may face claims of professional negligenceSolicitors who failed to warn of soaring ground rents on leasehold properties face a wave of claims for professional negligence, following Guardian Money revelations on a scandal that has engulfed thousands of unwitting homebuyers.Many have been unaware that the ground rent on new-build leasehold properties they have bought can escalate dramatically in future years following the introduction of new clauses in which it doubles every decade. Although most housebuilders have switched to a new formula of increases based on RPI, some people are finding that the new-build home they bought as recently as 2010 is virtually unsaleable. Continue reading…

Source : theguardian.com
Read more…New-build ground rent scandal could spark legal battles

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