More than 5,000 leaseholders '� including landlords '� could get refunds on their ground rent after the Competition and Markets Authority (CMA) secured assurances from nine firms that bought freeholds from housing developer Taylor Wimpey.
Those leaseholders who paid a doubled ground rent will receive refunds and the companies have promised to remove the terms from leasehold contracts that cause ground rents to double in price every 10 years and can lead to people being trapped in homes they can't sell or mortgage.
"All affected leaseholders will now see their ground rents remain at the original amount - when the property was first sold '� and this will not increase over time.
Sarah Cardell (main pic), CMA interim chief executive, says: 'For years, leaseholders have been plagued by what we believe are unfair practices. That's why we sought to tackle the problem by launching action against some of the biggest names in the business.'�
Secretary of State for Levelling Up, Greg Clark, adds: 'This is good news that will see thousands of leaseholders get the refunds they are entitled to. We will work with the CMA to continue challenging industry on its practices, so we can ensure more leaseholders get the fair deal they deserve.'�
The nine freeholders are: BDP Freehold Ltd, Mortgage Incentive Funds Ltd, The Bridges (Darlington) Management Company Ltd, Bessant Properties Ltd, Brigante Properties Ltd, Furatto Ltd and Long Term Reversions No 1 Ltd, SF Ground Rents No 18 Ltd, SF Ground Rents No 15 Ltd and RMB 102 Ltd, Sarum Properties Ltd and Taylor Court Ltd.
A further four national developers '� Crest Nicholson, Redrow, Miller Homes and Vistry '� have agreed to work with the companies who bought their freeholds to remove doubling terms.