OK Property can solve your ground rent problems!
House builders have been abusing their ability to sell brand new homes on a leasehold basis to an estimated 100,000 potentially inexperienced and likely first-time buyers with high, ever increasing ground rents.
If you are one of these unsuspecting leasehold homeowners, you may be in for a shock.
Leasehold properties are generally associated with flats that have an overall freehold title that is owned, perhaps by a management company and individual flats are sold on a leasehold basis for a period of around 99 years. As a leaseholder, you would be expected to pay a management fee for the maintenance of the overall building and a peppercorn ground rent which is often as low as £1.
However, property developers have stated to include a clause within their leasehold contracts which requires all homeowners to pay a ground rent of between £200 to £400 a year! According to Direct Line, they estimate the average cost of a typical ground rent on a newly built home is now £371 per year and in some instances, depending on the clause in each individual contract, is set to double every 10 years! This also applies to older homes.
Homeowners who have leasehold properties and have tried to sell simply cannot because many lenders will not lend against properties that have ground rent clauses. Many solicitors will also warn potential buyers of the issues surrounding the ownership of leasehold properties with ground rent clauses which means that, unless you are lucky and find a cash buyer willing to take the risk, you are going to be stuck in your leasehold home until you are no longer able to afford the increasing ground rent fees and mortgage repayments.
If you are one of the unfortunate leasehold homeowners with a ground rent clause in your contract, you may be wondering why your solicitor didn’t pick up on the clause when you purchased your leasehold property.
Well, it is estimated that ¾ of solicitors used were recommended by the property developer and many of these solicitors are now facing prosecution for conflicts of interest. Unfortunately, this is not going to resolve your problems if you are stuck owning a leasehold property with what looks like no way out.
If you are one of the thousands of people who own a leasehold property and are desperate to escape from the ground rent scandal, have no fear, OK Property is here!
OK Property are more than happy to release the burden of your leasehold property off your shoulders so you can escape from the troubling and ever increasing ground rent charges. We have cash investors who are looking to buy any type of property, even ones with leasehold clauses.
Please do not hesitate to contact us to find out how we can help.