New Leasehold House-Solicitors Maybe Negligent for Failing to Advise on Ground Rent
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