Another 500 households will be released from “problematic” leaseholds that saw the ground rent they paid double every 10 to 15 years.
The competition watchdog said that the households, whose homes are owned by eight different companies, would see their ground rent returned to where it was when their homes were first sold.
These eight freehold companies that have changed the terms of the contracts bought them from major housebuilders Countryside, Crest Nicholson, Miller Homes, Redrow, Taylor Wimpey and Vistry.
They inherited the contracts signed by these companies.
“We hope those affected by this update can breathe a little easier knowing they won’t have to struggle against this type of rising fee anymore.”
It means that more than 21,000 households have now been freed from what the Competition and Markets Authority called “problematic leasehold issues” since 2019.
Such onerous terms can trap people into houses that they find difficult to sell. If they fall behind on payments it even puts their right to keep their homes at risk.Last month, one London leaseholder reported that her freeholders were trying to take her home away from her after she refused to pay a bill that rose from £600 to £5,500.Another London leaseholder told Homes & Property they are facing financial ruin after being sent £7,000 of bills from their property management company in just six months.
George Lusty, interim executive director for Consumer Protection and Markets, said: “This is another great win for leaseholders.
“Over the past five years, we’ve achieved real and impactful change, with over 21,000 households freed from issues such as costly doubling ground rents.
“We hope those affected by this update can breathe a little easier knowing they won’t have to struggle against this type of rising fee anymore – particularly when many are already grappling with high costs elsewhere.”
The effort has included more than 30 companies.
