New-build Leasehold Flat
Discussion
Hoping some of the great minds/sleuths on PH can help me here.
I purchased a new-build flat in 2016 with the doubling clause through Persimmon. The Competition and Markets Authority (CMA) have contacted two other developers and told them to fix this by offering the extensions to customers. However, I have heard absolutely nothing about my developers. Does anybody know anything more about this? Based on other threads I'm starting to get a bit nervous about the prospect of selling. Also, I don't want to start the usual leasehold extension process if Persimmon will be offering it up discounted in the near future.
Any futher information would be greatly appreciated!
I purchased a new-build flat in 2016 with the doubling clause through Persimmon. The Competition and Markets Authority (CMA) have contacted two other developers and told them to fix this by offering the extensions to customers. However, I have heard absolutely nothing about my developers. Does anybody know anything more about this? Based on other threads I'm starting to get a bit nervous about the prospect of selling. Also, I don't want to start the usual leasehold extension process if Persimmon will be offering it up discounted in the near future.
Any futher information would be greatly appreciated!
Edited by Yeti97 on Thursday 1st April 10:49
In September 2020 the CMA did launch enforcement action against Persimmon for exactly this issue, so you may be included in this but just don't now about it yet.
I would get in touch with the CMA and see if they can give you any advice or up to date information.
At this staged the CMA have just written to Persimmon and 'outlined their concerns' and it may take some time for an agreement to be reached, or for the CMA to take further action, including legal, against Persimmon.
I would get in touch with the CMA and see if they can give you any advice or up to date information.
At this staged the CMA have just written to Persimmon and 'outlined their concerns' and it may take some time for an agreement to be reached, or for the CMA to take further action, including legal, against Persimmon.
Lord Marylebone said:
At this staged the CMA have just written to Persimmon and 'outlined their concerns' and it may take some time for an agreement to be reached, or for the CMA to take further action, including legal, against Persimmon.
From what I have read online I came to the same conclusion. Which is good news at least! Did not realise I could contact the CMA so I shall get on that. Hopefully, it is just a matter of waiting for CMA to take further action. Thank you!I've just emailed the CMA asking for more information so will update here if I get anything back.
As for the "offering extensions". I may have misunderstood previous news. But I believe the companies will be required to undertake the removal of ground rent and also extending the leasehold terms to whatever amount will be stated? That last bit I am not 100% on sorry.
There is an article here https://www.gov.uk/government/news/cma-requires-co... covering some more details.
As for the "offering extensions". I may have misunderstood previous news. But I believe the companies will be required to undertake the removal of ground rent and also extending the leasehold terms to whatever amount will be stated? That last bit I am not 100% on sorry.
There is an article here https://www.gov.uk/government/news/cma-requires-co... covering some more details.
Yeti97 said:
From what I have read online I came to the same conclusion. Which is good news at least! Did not realise I could contact the CMA so I shall get on that. Hopefully, it is just a matter of waiting for CMA to take further action. Thank you!
I presume you have found the correct contact details, but just in case, their website has the following information:"People wishing to provide further evidence regarding the companies named can get in touch via email leasehold@cma.gov.uk The CMA is interested in hearing information on either leasehold houses and/or flats, referred to above as leasehold homes"
Yeti97 said:
There is an article here https://www.gov.uk/government/news/cma-requires-co... covering some more details.
Right, I think there's some room for clarification.Leasehold flats (any horizontally divided building) will typically have a long lease and some sort of ground rent because in UK law the concept of a freehold generally needs to be something with exclusive ownership of a piece of land. Usually it's a relatively modest annual amount. More recently some builders have introduced a somewhat cheeky approach where ground rent doubles every, say, 10 years. Fine in the early stages but after a few decades has the potential to get expensive.
Some even cheekier builders had started selling houses on a "long lease with a ground rent" basis. So buyers were paying a freehold price for what is ultimately a leasehold asset. That is what has attracted such a storm of criticism - and rightly so.
It's possible that if "doubling every 10 years" has been stopped for houses it could similarly be criticised for flats. I've not yet heard anything about this but it's possible this may fit the concept of "extension" mentioned above.
I'm in a similar position, albeit a house with Countryside. They, along with Taylor Wimpey, have had enforcement action commenced by the CMA although I haven't heard anything and not sure how this works in practice as Countryside sold our freehold a few years ago to a company in some tax haven.
If you are on Facebook, there is a wealth of information on the National Leasehold Campaign and they are also on Twitter - @NLC_2019.
If you are on Facebook, there is a wealth of information on the National Leasehold Campaign and they are also on Twitter - @NLC_2019.
Lots of advice and information on Leasehold Advisory Service web site, link below
https://www.lease-advice.org/faq/what-is-the-cma-d...
https://www.lease-advice.org/faq/what-is-the-cma-d...
Below part of an email I have just received from The Leasehold Advisory service:-
We are happy to announce that we are attending a live webinar on Thursday 29th April with the The Federation of Private Residents Association.
LEASE Senior Adviser Nicholas Kissen will be joining FPRA Chairman Bob Smytherman to answer your legal questions. It would be very helpful to have questions submitted in advance, so please send any submissions to the admin office at info@fpra.org.uk and we will try and get through as many as possible.
Click here to register for the webinar on Thursday 29th April at 10AM
After registering, you will receive a confirmation email containing information about joining the webinar.
CMA requires Countryside and Taylor Wimpey to remove leasehold terms
In September 2020, the Competition and Markets Authority (CMA) launched enforcement action against 4 leading housing developers it believes may have broken consumer protection law in relation to leasehold homes. These included Countryside Properties and Taylor Wimpey, for using possibly unfair contract terms, and Barratt Developments and Persimmon Homes over the possible mis-selling of leasehold homes.
The CMA has now written to Countryside and Taylor Wimpey outlining its specific concerns that their use of terms that double the ground rent every 10 or 15 years breaks consumer protection law.
To address the concerns, the CMA is requiring the removal of ground rent terms which it thinks are unfair from all existing Countryside and Taylor Wimpey contracts to make sure they are no longer in breach of the law. The companies must also agree not to use the terms again in any future leasehold contracts.
Countryside and Taylor Wimpey now have the opportunity to respond to the CMA’s detailed concerns and avoid court action by signing formal commitments – known as ‘undertakings’ – to remove the ground rent terms from their leasehold contracts.
As part of its ongoing review of the leasehold sector, the CMA will continue to investigate certain firms – such as investment companies – which bought freeholds from these developers and have continued to use the same leasehold contract terms. Its investigation into Barratt Developments and Persimmon Homes is also ongoing.
For people who own, or are looking to buy, a leasehold property, the CMA has worked with LEASE to produce written and video guidance. The guidance offers advice on a number of issues, including what leaseholders can do if they are faced with fees or charges that they consider unjustified."
We are happy to announce that we are attending a live webinar on Thursday 29th April with the The Federation of Private Residents Association.
LEASE Senior Adviser Nicholas Kissen will be joining FPRA Chairman Bob Smytherman to answer your legal questions. It would be very helpful to have questions submitted in advance, so please send any submissions to the admin office at info@fpra.org.uk and we will try and get through as many as possible.
Click here to register for the webinar on Thursday 29th April at 10AM
After registering, you will receive a confirmation email containing information about joining the webinar.
CMA requires Countryside and Taylor Wimpey to remove leasehold terms
In September 2020, the Competition and Markets Authority (CMA) launched enforcement action against 4 leading housing developers it believes may have broken consumer protection law in relation to leasehold homes. These included Countryside Properties and Taylor Wimpey, for using possibly unfair contract terms, and Barratt Developments and Persimmon Homes over the possible mis-selling of leasehold homes.
The CMA has now written to Countryside and Taylor Wimpey outlining its specific concerns that their use of terms that double the ground rent every 10 or 15 years breaks consumer protection law.
To address the concerns, the CMA is requiring the removal of ground rent terms which it thinks are unfair from all existing Countryside and Taylor Wimpey contracts to make sure they are no longer in breach of the law. The companies must also agree not to use the terms again in any future leasehold contracts.
Countryside and Taylor Wimpey now have the opportunity to respond to the CMA’s detailed concerns and avoid court action by signing formal commitments – known as ‘undertakings’ – to remove the ground rent terms from their leasehold contracts.
As part of its ongoing review of the leasehold sector, the CMA will continue to investigate certain firms – such as investment companies – which bought freeholds from these developers and have continued to use the same leasehold contract terms. Its investigation into Barratt Developments and Persimmon Homes is also ongoing.
For people who own, or are looking to buy, a leasehold property, the CMA has worked with LEASE to produce written and video guidance. The guidance offers advice on a number of issues, including what leaseholders can do if they are faced with fees or charges that they consider unjustified."
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