By John Hyde2021-05-07T10:09:00+01:00
A Midlands firm is being pursued for a negligence claim by a former leaseholder client over the issue of incremental ground rent charges.
Carole Patterson says she brought the action after discovering the ground rent of her one-bedroom flat in East Dulwich doubles every five years. She bought the property in 2011 unaware of this clause and has seen her bill rise from £525 in 2016 to £1,050 this year: at this rate the ground rent will be £4,200 a year in 2031 and will rise to more than £1m in 50 years’ time.
Now represented by London firm Osbornes Law, she is pursuing the negligence action against FBC Manby Bowdler on the basis that the firm failed to tell her about the clause.
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So while her bill is around £1,050 this year, in 50 years time she would have to pay £1,075,200 a year to keep the home, rising to half a billion pounds in 100 years time.
The Government launched an investigation into the leasehold scandal in 2017 after experts raised concerns about how developers sold residential properties with spiralling ground rents.
In January, ministers proposed new reforms to crack down on unfair and abusive leasehold contracts.
Huge shock: Carole Patterson faces ever growing bills
These included allowing leaseholders to extend their lease agreements at zero ground rent, for a term of 990 years . But the plans have yet to be debated in Parliament and may not start until 2022.