Thousands of tenants freed from paying double for land lease rights
CMA says it will take further action against the land lease.
Thousands of people who purchased land lease homes from home developer Countryside Properties will be freed from the costly terms of the contract, following an investigation by the Competition and Markets Authority.
The CMA, which has been investigating Countryside and other property developers’ practice of doubling land rents every 10 to 15 years, said it would take further action, including legal proceedings, against any developer who did not “do the right thing on their part as tenants and eliminate problematic causes from their contracts.”
Contract cost increases can make it difficult for some homeowners to sell or mortgage their homes, while their rights to their property can also be at risk if they fall behind in their land rent payments.
Following the CMA investigation, Countryside Properties has voluntarily agreed with the watchdog to remove the terms of their leases that cause rents on the land to double.
The company will also remove updated contract terms that increased land rents with the higher retail price index inflation measure. Affected tenants’ land rent will now remain at the amount charged when they purchased their home and will not increase over time.
Countryside confirmed that it no longer sells rental properties with the same rental clauses.
The announcement comes a year after the CMA launched enforcement action against four home developers – Countryside, Taylor Wimpey, Barratt Developments and Persimmon Homes – who it believes may have violated consumer protection law about homes leased.
Insurance group Aviva, which bought properties from developers, agreed in June to remove rental terms on the land deemed unfair and reimburse homeowners whose rents doubled after the CMA investigation.
Homebuilder Persimmon also agreed at the time to offer rental homeowners the opportunity to purchase freehold ownership of their property at a discounted price and to make refunds to some homeowners who purchased their properties.
IN MARCH, the CMA wrote to Countryside and Taylor Wimpey, asking them to remove the land rental terms from their contracts.
Andrea Coscelli, CMA Executive Director, said: “Countryside tenants can now breathe a sigh of relief knowing that they will no longer be forced to pay these double land lease. No one should feel like a prisoner in their home, trapped by terms that mean they may have a hard time selling or mortgaging their property.”
HICH LTD has revolutionised the property survey market since day one! Are you looking for a roof, structural, or bespoke survey? Request it here!
Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!
Twitter: @HichLTD
Facebook: HICH-LTD
We are recruiting Freelance Surveyors and Building Inspectors to carry out Roof & Property Condition Inspections. You will be required to inspect and assess the whole external and internal condition of various property types, new and old, including Domestic and Commercial. The position is Home-based, covering all postcode areas throughout the U.K.
Fees range from between £150-£195 per inspection, previous experience in building surveying and or buildings insurance claim surveying with a proven track record or property inspection experience essential.
If you or someone you know meets these requirements and wants to be part of the team of the best surveying company in the UK, don’t hesitate to get in touch with us at hichinfo@aol.co.uk.
