Issues with modern leases

Legal issues with modern lease are something we are seeing more and more. We have clients now trying to buy or sell new properties bought as leasehold with high ground rents. The trouble lies with ground rents above £250. There is a risk of your long lease becoming an assured tenancy so your landlord could cancel your lease if you do not pay your ground rent for two months. With old long leases, where the ground rent is only a few pounds each year, there must be three years rent outstanding and the court has discretion as to whether your lease should be cancelled.

This makes the new leasehold houses and flats difficult to buy or mortgage. Banks do not want to lend a large sum of money against a lease which could easily be cancelled.

Also there are similar issues with buildings insurance, fire safety & asbestos reports, S.20 service charge notices, notice of assignment and charge costs, converted houses in multiple occupation, exclusive easements, and leases written differently for each flat!

Another BBC article here. Wonder if they have any good news on their website?

2018-01-17T15:54:35+00:00

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