When you buy your home you might expect to own the land its built on. That is the case when you buy a house with the freehold included, but in recent years developers have been increasingly selling new builds on a leasehold basis, so you technically own your home but another person or company, often the developer, owns the land (the freehold). If that is the case then you will often have to pay ground rent for the privilege of having your home on someone else’s land. Leasehold homes are quite common, especially in the North-West but problems are arising particularly where the ground rent is high or set to increase. Often once estates are complete the developer sells off the land to an investor who of course is keen to collect the escalating rents and will sometimes impose other charges, for example for improving the property or changing a mortgage. Some investors are of course willing to sell the freehold back to homeowners at an inflated rate!

Developers in the North-West have been in the news recently for leaving homeowners facing a ground rent which doubles every ten years. This would mean that a household paying a ground rent of £250 in 2017 are finding that by 2057 the charge will be going up to £4,000 per year! Enough to pay for an all-inclusive family holiday abroad! Residents in the North-West have been left understandably upset and frustrated at how the developer can do this, leaving them in an impossible position where they have difficulty selling their homes, or will have difficulty paying for the privilege of living in the family homes they have bought.

They say buying a home is one of the most stressful life events so it is reasonable to rely upon the solicitor you are paying to provide you with help and guidance through the process. In the stress and excitement of buying a home it is your solicitor’s job to  point out the conditions attached, particularly if these are unusual or will have long-term implications. If your conveyancing solicitor has not advised you properly on any conditions attached to the purchase then they may have been negligent and you may have a claim against them. At Irvings Law, we have specialist solicitors who can investigate your conveyancing file and see whether you have been properly advised. Give us a call today on 0800 954 0213 or fill in our Claim Form for a free, no-obligation discussion with one of our solicitors.

May Lee
Associate, Irvings Law