As a consequence of action taken by the Competition and Markets Authority, leaseholders with Taylor Wimpey will no longer be subjected to ground rents that double every 10 years.
Taylor Wimpey have voluntarily given formal commitments to the Competition and Markets Authority to remove terms from leasehold contracts that cause ground rents to double in price which result in people struggling to sell or obtain a mortgage on their home or puts them at risk of falling into arrears with their rent. Taylor Wimpey will also remove terms which had originally been ground rent doubling clauses but were converted so that the ground rent increased in line with the Retail Prices Index.
As a result of the action taken by the Competition and Markets Authority, Taylor Wimpey leaseholders who are affected will see their ground rents remain at the original amount – i.e. when the property was first sold and will not increase over time. Taylor Wimpey have also confirmed to the Competition and Markets Authority that they have stopped selling leasehold properties with doubling ground rent clauses.
Please note that the undertakings provided by Taylor Wimpey to the Competition and Markets Authority were voluntary and without any admission of wrongdoing or liability, It should not be assumed that Taylor Wimpey has breached the law because only a court can decide on such matters.
For further information in relation to this update, please visit https://www.gov.uk/government/news/cma-action-frees-leaseholders-from-costly-contract-terms
BBC NEWS article: https://www.bbc.co.uk/news/business-59753095