Barratt drops ground rent on new leases
Barratt Developments has eliminated ground rents on new developments, it has been reported this week
Barratt Developments has eliminated ground rents on new developments, it has been reported this week.
Barratt, the UK’s largest housebuilder, is also reportedly to offer 999-year leases on new-build flats, according to the Independent newspaper.
Campaigners have welcomed the news, increasing their hope that this will end the ground rents industry – though it seems existing Barratt home leases will not have ground rent removed.
Beth Rudolf, director of delivery at the Conveyancing Association, commented: “Without seeing the Barratt’s lease, it is difficult to make a quick judgement.
“However it is clearly positive they are already taking the lead on the recommendations in the Law Commission reports, earlier in the year, to reduce issues with leases.”
She added: “We now just need to see their latest draft lease to check they fully remove the creation on the financial asset in the freehold and do not include any potentially onerous terms, for example, by relying on the Landlord and Tenants (Covenants) Act rather than requiring leaseholders to pay to enter into a deed of covenant every time a flat is sold.
“Plus, it should also require that the LPE1 is going to be provided at the MHCLG-recommended cost of £200 within 10 days, with £50 for updated data if required, rather than the current fees and timescales.”
In September 2020, the CMA began enforcement action involving four of the UK’s leading housing developers, including Barratt Developments, who it suspected had broken consumer protection law in relation to leasehold homes.
The other four targeted by the CMA are Countryside Properties, Persimmon Homes and Taylor Wimpey.