Please help ground rent issue

Andytree · 12 June 2019 at 8:34PM

Thank you for all your responses. It’s been interesting to read.

Exchange happened on 3 October and completion happened two days later.

I was not sent any deed of variation. The way I knew that the lease had been extended was a two page ‘Official Copy of register of title’. This has no information about ground rent costs, so I thought that would’ve stayed the same.

Andytree · 12 June 2019 at 8:37PM

I was not aware that the ground rent had been changed as part of the transaction to extend the lease before I completed.

I’ve checked every single email and nothing about this was mentioned.

Two days before exchange my solicitor said the ground rent was the £50 from the original lease. I can only assume the solicitor had not seen any variation as well at the time of completion.

rachel230 · 12 June 2019 at 10:09PM

Unfortunately this sneaky behaviour is very common with an informal lease extension.
You will have some comeback either from your solicitor or the vendor depending on the exact dates of variation/exchange.
I suggest you check your lease (and any separate variations) with the lease and variations you thought you were buying, and see if they differ or have had other sneaky clauses put in other than the one you state.

Andytree · 12 June 2019 at 10:31PM

Thank you Rachel.

I’m just requesting the updated lease from the land registry.

It appears that an informal lease extension with the new terms was put in place on the 26th of September. I was not sent this before completion on the 3rd of October.

So I thought the ground rent was the same as the original lease. This is the only one I’ve been sent.

As the solicitor did not check this, what recourse do I have.

SRA?
Legal Ombudsman?
Firm specialising in legal negligence?

Obviously I’ve started out by complaining to the solicitor who was recommended by the mortgage broker. They are “looking into it”. The case was handled by quite a junior person.

Thanks again

rachel230 · 13 June 2019 at 12:51AM

Have sent you a PM Andy

Tom99 · 13 June 2019 at 3:26AM

Your solicitor has been negligent in either not checking the terms of the lease extension and/or not informing you (and presumably your mortgage co ) of the change in terms.
What redress are you looking for?
The value of the extra £100 at say 6% discount rate would be £1,667
You can apply for a statutory lease extension after 5th Oct next year but if the outstanding term is already long then the only benefit will be buying out the ground rent, however you would also have to pay both sides costs which may well be £2,000.
What length is the extended lease? Were any other clauses in the lease changed?

Andytree · 13 June 2019 at 6:59AM

Thanks Rachel and Tom

In terms of redress it’s not money, but I’d rather be in the position I would've been had the vendor sought a statutory lease extension after the 99 years of the original lease which started in March 1997.

I’ve now got a lease of 167 years where the rent doubles from £150, every 25 years for the whole lease. The first doubling is in June 2042.

It’s annoying as I know it will affect resale values. I’m money terms I can easily afford the £150 and 2042 is a long time away.

It seems unfair that a vendor is leaving a property will be able to arrive at an agreement to pass future rent costs on to someone other than themselves.

Hopefully the government or CMA will take some action here.

Tom99 · 13 June 2019 at 8:19AM

Andytree wrote: »

Thanks Rachel and Tom

In terms of redress it’s not money, but I’d rather be in the position I would've been had the vendor sought a statutory lease extension after the 99 years of the original lease which started in March 1997.
I’ve now got a lease of 167 years where the rent doubles from £150, every 25 years for the whole lease. The first doubling is in June 2042.
It’s annoying as I know it will affect resale values. I’m money terms I can easily afford the £150 and 2042 is a long time away.
It seems unfair that a vendor is leaving a property will be able to arrive at an agreement to pass future rent costs on to someone other than themselves.Hopefully the government or CMA will take some action here.

The government or CMA are not going to compensate you for having to pay an extra £100pa. Its up to you to claim your solicitor was negligent. I doubt very much you could pin any blame on the seller as you solicitor should have had a copy of the deed of variation before you exchanged contracts.

Andytree · 13 June 2019 at 8:53AM

Thanks Tom.

So I guess given that my solicitor did not check the deed of variation or someone it to me, my only option is down the negligence route?

snilloct1957 · 13 June 2019 at 9:12AM

Shouldn't the seller's solicitor have notified the buyer's solicitor about the change in ground rent? Maybe he was negligent? Just saying...

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Please help ground rent issue

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