My feed
Premium

Please
or
to access all these features

Join our Property forum for renovation, DIY, and house selling advice.

Property/DIY

Escalating ground rent on my dream flat

16 replies

RubberDuckFiend · 24/06/2017 22:20

I'm currently buying my first property and it's all falling through 😭.

Apparently the estate agents (PURPLE BRICKS!!! 😤) gave the wrong solicitors details to the buyers' solicitor (even though I entered it right on their website) as they were trying to peddle their commissioned solicitor, and this meant the draft contracts went to the wrong solicitor and sat on their desk for weeks unattended. When I FINALLY get the documents it turned out that not only was a load of stuff missing that my solicitors didn't notice, but the sellers needed to complete by 7 days time, and (worst of all) it was one of those properties with doubling ground rent every 10 years from Taylor Wimpey, meaning £150 ground rent will be £4800 in 50 years, which I only noticed because my dad pointed it out, the solicitors said nothing and just said sign on the dotted line. Sorry but am I wrong in thinking this is what I'm paying THEM to spot?

Well obviously I don't want to get stuck in this lease, absolutely crazy!!! Luckily I haven't exchanged yet, so no obligation to buy, but desperately wanted that flat so feel heart broken. I talked to the solicitor who was surprised and laughed when I said the sellers wanted to complete in a week (it was ridiculous this surprised her considering she should have read this in the documents, but also we've only had the contract for days so I don't know how they can expect to push us to manage a week?) The solicitor has said she has no idea on the ground rent and has simply said she's passed it on to the senior partner but they've been too busy to look as of yet.

Question is, should I be formally complaining about the real estate agent for the solicitor mix up, and should I be trying to get my money back from the solicitors for frankly slap dash work/negligence, particularly if all falls through now and I'm out of pocket (they didn't notice missing documents/ didn't look at ground rent like I asked them to and almost let me sign), and does anyone think there will be anything to be done about the ground rent like renogiating the lease or would they be inclined to think I'm overreacting or just walk away now?

I feel quite sorry for the sellers in all this because I'm pulling out potentially a week before their requested exchange/completion, unless of course they were trying to pull the wool over my eyes and hope we didn't spot the ground rent clause (I mean it was a big scandal a few years back, I'm not sure they can be entirely oblivious to the issues, particularly since it doubles NEXT year).

Sorry about the rant, just so devastated!

OP posts:
wowfudge · 25/06/2017 06:40

Do you know what? I think you have had a lucky escape. Yes you may have incurred legal fees (have you, not a lot has happened yet?) but you won't have to pay ridiculous ground rent in the future. I'd start looking again.

KanielOutis · 25/06/2017 06:54

Doubling every 10 years is ridiculous. Mine is a 99 year lease at £200, doubling every 33 years and I thought that was steep. In 66 years (long after I'm gone), the ground rent will be £800/year.

TurquoiseDress · 25/06/2017 08:58

To be honest OP I agree that you've probably had a lucky escape!

How can the vendors be looking to complete in 7 days and this is the first chance you've even had to look at the draft contract?!

The ground rent thing is a big thing and has been highlighted on this website and in many other newspapers.

Mainly relating to expensive new build properties with a ground rent that is projected to increase exponentially in the future. And NB houses that are leasehold with huge service charges/ground rent etc

Anyhow, that is all for another thread.

Sorry to hear you're devastated but it sounds like you need to just walk away or get your solicitor to do their job and answer all your queries.

EyeHalveASpellingChequer · 25/06/2017 09:00

The solicitor is meant to read the contract out to you, either in person or over the phone.

monsieurpoirot · 25/06/2017 09:39

If they were the original owners (ie purchased as a new flat from TW), Taylor Wimpey is now saying the will remove the clause.

www.taylorwimpey.co.uk/leaseholdfaq

AnnieOH1 · 25/06/2017 09:57

Okay firstly your signature on the contract in this instance doesn't mean anything. It would just sit on the solicitors files until exchange is ready to happen.

Have searches been commissioned as yet? Because those fees will most likely be payable no matter what has happened.

It isn't for the solicitor to go through every single part of the property, but they will generally prepare some sort of lease detail to highlight anything that they've found; however part of buying properties is down to the due diligence of the buyer not the various other people involved.

Were you buying this property new build? Direct from the developer or from a flipper?

The 28 day turn around time, as it seems the errors were from the seller's appointed agent, needs to be reset. Sadly though if the development is oversubscribed you may discover that there is no room to move this (unlikely but happens) and someone else will come in and buy the apartment.

How big is the apartment block itself? Is there any possibility for you to explore collective purchase of the freehold?

RubberDuckFiend · 25/06/2017 10:20

The searches have all been done, so I'm out a few hundred from these that I know I won't get back since these are external fees. The solicitors are no completion no fee, but I don't know if this includes the £150 I put on account with them. If not I want this back (as I'm sure most would haha)

It's not a new build, it's coming up to its first ten year anniversary next year. The sellers got it as a new build and have kept it since.

I think there were 16 properties in the development with the same leases and this clause as well, they were offered the purchase of the freehold at 5 years for £60000 between them, but apparently nobody wanted to buy it (or at least this is what I could gather, I'm not certain due to the legal jargon). It seems to have been part of Taylor Wimpey's strategy to put in these clauses, offer the freehold after a few years then sell it on the third parties who will then be much harder to negotiate with. I think the original buyers have the opportunity to go back to Taylor Wimpey and get it renegotiated by them, but this would probably take months. Sad

OP posts:
wowfudge · 25/06/2017 10:41

Walk away now. Seriously, you will find something else which is better and doesn't come with such ridiculous charges. Just pull the plug. You may have spent a few hundred pounds now, but that's nothing compared to the thousand the flat will cost and the future charges and issues if you cannot sell it in the future when the ground rent is more onerous.

KatyBerry · 25/06/2017 10:43

If they're not selling in 7 days to you, they aren't selling in 7 days to anyone. Their agent made the mistake sending papers to the wrong solicitors. Get your solicitor to get their finger out and send them a strong note pointing out their errors and requiring they have the ground rent clause removed

GU24Mum · 25/06/2017 10:50

If you're not the original tenant (which you aren't), your solicitor can't "require" anyone to take the clause out. Agree that you've dodged a problem property frankly. If you want to go ahead, you solicitor will have to tell the seller's sols that they need to speak to TW and see if it will vary the lease to take out the ground rent clause. You can definitely say that you won't buy it otherwise but the seller is the one that needs to see if it can sort it out.

SnowBallsAreHere · 25/06/2017 10:52

This reply has been deleted

Message withdrawn at poster's request.

AnnieOH1 · 25/06/2017 11:22

I'm very surprised searches have been done, usually solicitors will wait for the contract plan and then ask you to check it to ensure that they are searching the correct property.

I would seriously look elsewhere. Your seller is taking the p asking for a 28 day turn around time, it just doesn't happen outside of commercial contracts and even then doesn't always happen. I would question whether they've added this clause in to try and get everyone to rush and thereby miss anything important.

Do the searches show anything of concern? Has a report gone to your mortgage lender yet?

If the solicitors are on a no win no fee basis, what does the £150 equate to? Have you already paid for the searches? You may be able to offer them to the vendor if they have someone else lined up to speed their purchase. Gut wrenching but at least you get some money back.

How many years are on the lease? If it's 99 years, that leaves you with 89 years and if you did purchase you would find it rapidly bcomes unmortgagable without a pricey lease extension. This is true of any shorter term lease, but even more so when you have such ridiculous ground rents and service charges.

It's a valuable lesson to learn, please don't be too disheartened, you will find somewhere - but now you'll know what to look for etc with eyes wide open for the next property. xxx

monsieurpoirot · 25/06/2017 11:58

Ha ha thank you snowBalls. Seems such a simple solution!

eastwest · 25/06/2017 21:52

Wow, well this is not of any use to you but I am shocked by the doubling ground rent thing. I agree with everyone else - you have had a lucky escape. You would never be able to sell it again and it would be a total money pit.

TDHManchester · 25/06/2017 22:10

Honestly,who would by a leasehold property least of all a flat,total rip off,,

peukpokicuzo · 25/06/2017 22:37

Don't buy it with the 10 year doubling - no way!

Doubling every 33 years isn't too bad - that's equivalent to about a 2% increase each year but coming all at once and it is unlikely that any one occupants would like there long enough to be hit by it twice.

Doubling every 10 years is equivalent to about 7% increase every year - no matter what inflation is doing. Foolish to commit to that.

Please create an account

To comment on this thread you need to create a Mumsnet account.