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CMA frees hundreds more leaseholders from costly contract terms

More than 500 households will no longer be subject to terms that cause their ground rents to double in price following further action from the Competition and Markets Authority (CMA), which will see eight additional firms now remove problematic clauses from their leasehold contracts.

These terms, which kick in every 10 or 15 years, can leave people trapped in homes they cannot sell or mortgage, and their property rights can be at risk if they fall behind on payments.

The companies involved, which include investment firms, bought freeholds originally owned by housing developers Countryside, Crest Nicholson, Miller Homes, Redrow, Taylor Wimpey, and Vistry, and continued to use the problematic contract terms at the expense of leaseholders.

All affected leaseholders will now see their ground rents return to the original fee amount – i.e. the amount charged when the property was first sold – and will not increase over time.

George Lusty, interim executive director for consumer protection and markets, said: “This is another great win for leaseholders. Over the past five years, we’ve achieved real and impactful change, with over 21,000 households freed from issues such as costly doubling ground rents.”

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