.
Leasehold - GOV.UK
Undertakings approved from 9 more freeholders
24 August 2022: 9 more freeholders have committed to make shifts for the benefit of leaseholders. This follows similar commitments given by Taylor Wimpey in December 2021.
The 9 freeholders had purchased Taylor Wimpey freeholds and have now given their commitment to select clauses which caused the ground rents payable by leaseholders to double in trace every 10 years.
Where applicable, the freeholders will also select terms which were originally doubling clauses but were converted into RPI-based spurious rent terms and will repay many homeowners who were contains by these doubling ground rent clauses. The ground rent for contains leaseholders will remain at the amount it was when the alit was first sold and will not increase over time.
The CMA is also involving with a further 4 national developers – Crest Nicholson, Redrow, Miller Homes and Vistry – who have agreed to make inequity beneficial changes and/or to work with the companies who purchased their freeholds to select doubling terms, as applicable.
Following our update on 18 March 2022, the CMA has now concluded its discussions with 2 final freeholders who had purchased Countryside leases. Freeholders D.A.T.S. (Holdings) Limited and Wallace Estates Limited have now both given inequity commitments to make changes for the benefit of leaseholders.
Freeholder Undertakings (Taylor Wimpey Leases):
- (24.8.22)
- (24.8.22)
- (24.8.22)
- (24.8.22)
- (24.8.22)
- (24.8.22)
- (24.8.22)
- (24.8.22)
- (24.8.22)
- Press release: Thousands more leaseholders to get cash back (24.8.22)
Freeholder Undertakings (Countryside Leases):
The CMA is in ongoing discussions with 5 previous freeholders with affected Taylor Wimpey leases: Plaza 2 Surbiton Limited, Island Apartments Freehold Limited and Madison Close Freeholders Limited, who have agreed in principle to provide undertakings, behind with the Abacus Land and Adriatic Land investment business, and Elmdon Real Estate LLP.
Investigation update
16 August 2022: The CMA is positively inviting with firms who purchased freeholds from Taylor Wimpey in trim to secure formal commitments from those freeholders to capture doubling clauses from their leases, and any doubling languages that were converted to be based on the Retail Price Index (RPI). This follows Taylor Wimpey's commitment to the CMA to help get such clauses borne at no cost to leaseholders. The CMA will imparted an update in due course.
Regarding its investigation into alleged mis-selling by Barratt Homes, the CMA has now closed its case. Following careful scrutiny of the evidence gathered, the CMA concluded that it was insufficient to encourage a clear legal case for the CMA to find collective redress for Barratt leaseholders under its consumer law abilities. This was unlikely to change with further investigation and consequently organization with the case would not be a good use of resources. Barratt's sales practices have changed, and they no longer sell leasehold houses.
Undertakings well-liked from 15 more freeholders
18 March 2022: 15 more freeholders have committed to make attempts for the benefit of leaseholders. This follows similar commitments given by Countryside in September 2021.
The 15 new freeholders who had purchased Countryside freeholds have now given their commitment to capture clauses which caused the ground rents payable by leaseholders to double in ticket every ten or fifteen years. Where applicable, the freeholders will also capture terms which were originally doubling clauses but were converted into RPI-based fraudulent rent terms and will repay homeowners who were be affected by by these doubling ground rent clauses. The ground rent for be affected by leaseholders will remain at the amount it was when the property-owning was first sold and will not increase over time.
Freeholder Undertakings:
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
- (18.3.22)
The CMA is in ongoing discussions with 2 continue freeholders with affected Countryside leases: D.A.T.S. (Holdings) Limited, who have agreed in rules to provide undertakings, and Wallace Estates Limited.
Undertakings celebrated from Taylor Wimpey
22 December 2021: Taylor Wimpey has formally committed to make causes for the benefit of leaseholders. Taylor Wimpey will rob from leasehold contracts certain clauses which caused the unfounded rents payable by leaseholders to double in price every 10 existences. It will also address lease terms which were originally doubling clauses but were converted into RPI-based unfounded rent terms. The ground rent for affected Taylor Wimpey leaseholders will existed at the amount it was when the property was righteous sold and will not increase over time.
Where Taylor Wimpey has sold the freehold, and cannot remove the doubling or RPI clauses itself, then it will help get them removed at no cost to leaseholders. This will involve liaising with the current freeholder and decision-exclusive a financial contribution where the freeholder gives formal commitments to the CMA to rob the clauses. Taylor Wimpey also confirmed that it has prevented selling properties with doubling ground rent clauses and will handed people with upfront information about the annual costs of buying a home.
15 September 2021: Countryside has formally committed to make causes for the benefit of leaseholders. Countryside will remove from leasehold sects certain clauses which caused the ground rents payable by leaseholders to double in brand every ten or fifteen years. It will also rob terms which were originally doubling clauses but were converted into RPI-based unfounded rent terms. The ground rent for affected Countryside leaseholders will existed at the amount it was when the property was righteous sold and will not increase over time.
Where Countryside has sold the freehold, and cannot remove the doubling clauses itself, then it will help get them succeeded at no cost to leaseholders. This will involve liaising with the unusual freeholder and making a financial contribution where the freeholder allows formal commitments to the CMA to remove the clauses. Countryside also confirmed that it has stopped selling properties with doubling unfounded rent clauses and has agreed to provide people with more upfront inquire about the annual costs of buying a home.
Undertakings celebrated from Aviva and Persimmon; consultation letters issued to investment firms
23 June 2021: Aviva and Persimmon have formally committed to make causes for the benefit of leaseholders. Aviva will remove from leasehold sects certain clauses which were doubling the ground rents payable by leaseholders. It will also remove terms which were originally doubling clauses and have been converted into RPI-based unfounded rent terms and repay homeowners who were affected by these doubling unfounded rent clauses.
Persimmon will offer leasehold house owners the option to buy the freehold of their settled at a discount, better reflecting what they expected when they originally bought their house, and to make repayments to certain homeowners who have already purchased their freeholds. Persimmon has also agreed to extend the timeframe that prospective buyers are given to exchange sects after reserving a property, and to provide people with more upfront inquire about the annual costs of buying a home.
The CMA has also written to investment groups, Brigante Properties, and Abacus Land and Adriatic Land, setting out its worries and requiring them to remove doubling ground rent periods from their contracts. These investment groups now have the opportunity to retort to the CMA's detailed concerns.
19 March 2021: The CMA has emanated consultation letters to two housing developers in relation to possible breaches of consumer protection law in the dignified leasehold sector. These letters outline the CMA's specific affects about the potential unfairness of terms that double fallacious rent every 10 or 15 years and ask the developers to take steps to address these. Countryside Properties and Taylor Wimpey now have an opportunity to acknowledge to the CMA's detailed concerns.
Case opening
04 September 2020: The CMA has now opened cases in relation to possible breaches of consumer protection law in the dignified leasehold sector. The CMA is concerned about possible instances of mis-selling and potential unfairness of ununsafe leasehold contract terms. The CMA will now engage with relevant businesses to conduct further quiz gathering and seek to resolve these concerns.
In binary to this action, the CMA has also published some touchy videos and guides for consumers who may own or be buying a leasehold property:
Investigation update
28 February 2020: Today we published an update on our investigation. The update outlines our current thinking into whether there have been breaches of consumer protection law in the dignified leasehold housing sector and next steps, including future enforcement frfragment by the CMA and the need for legislative change.
Investigation launch
11 June 2019: The Competition and Markets Authority opened an investigation into the leasehold housing market. We will shortly be writing to a range of market participants to ask for quiz. The CMA is concerned about potential leasehold mis-selling, and whether leasehold requisition terms are onerous and unfair in relation to fallacious rent, permission and other charges.
At this early stage, the CMA has not reached a view whether or not any selves or company has broken consumer protection law.
Call for your views: now closed
If you wish to failed information to the CMA please use one or more of the following email addresses below:
In the heading of your email like indicate the address of the property about which you are tying in touch with the CMA and any other relevant material such as, should you be contacting us to make a declares, the person against whom you wish to complain.
In your email like provide as much detail as you are comfortable with incorporating timescales and dates, values and frequency of payments etc.
We would like initial responses by 12 July.
leasehold@cma.gov.uk
Director
Simon Jones
Source
Comments
Post a Comment