If you pay ground rent to Estate & Management Ltd, you should read this!
There can be many issues with the legal aspects of leasehold properties, and one recent proposal will go some way to resolving problems caused by “doubling ground rents”.
Doubling ground rent is where a ground rent payable under a lease, doubles over a relatively short period of time, usually every 10 or 15 years. Over a long lease this can mean that a very large amount of ground rent will become payable.
Leases of with this type of clause in them are essentially unsellable and/or un-mortgageable. Usually the leases have to be varied to amend these clauses through a deed of variation, which can be costly and can take some time.
Estates and Management Limited (E&M) are managing agents for a large number of freehold investment companies, and collect and administer ground rent on their behalf.
Recently, E&M have written to the leaseholders of leases where the ground rent doubles more frequently than every 20 years offering to enter into a deed of variation on a voluntary basis, and to pay the legal costs of leaseholders.
This resolves this problem with the leases, free of charge to the leaseholders, at a time more suitable and less stressful than when you are trying to sell or mortgage the property.
If you receive a letter from E&M or similar management companies, please contact Tinsdills for advice on 01782 956123 or complete our contact form.