New Leasehold Houses have become increasingly common although it is often difficult to see any real benefit for the purchaser. There have been a number of instances recently where the ground rent has started at a low level but the freehold has been sold and the new freeholder has demanded large sums, in some cases thousands of pounds, for the purchase of the freehold.
Nicholas Johnson a Partner and Professional Negligence Specialist at Kitsons says.
“New Leasehold houses are increasingly common. It is clearly part of a conveyancing solicitors duty to understand the ground rent mechanism and to advise the Client on how it operates , so that the Client can make an informed decision on whether to proceed “
Johnson goes onto say that it has long been the case that solicitors are under a duty to advise Clients on unusual rent review provisions in leases, that by extension this applies to advising on onerous ground rent terms.
“Buying a house is usually a Clients largest lifetime investment. Conveyancing solicitors have a duty to ensure that a Client is aware of all matters affecting the property prior to exchange of contracts so that they can decide whether they wish to proceed. “
If you'd like further information, please contact Nick Johnson direct on 01392 455555