Rise In London Leasehold Work For Coles Miller17th Apr 2019
Coles Miller’s residential leasehold solicitors report a significant increase in enquiries from central London.
“We have noticed a marked increase in work from central London in the last few months,” said residential leasehold legal executive Amy-Paige Gregory, who has been with the department for four years.
“There has also been an increase in the number of enquiries about rising ground rents.
“If a ground rent outside London exceeds £250 (or £1,000 in London) per year and the leaseholder is in arrears, this may cause further complications for the leaseholder.
“In certain circumstances, the landlord may be able to claim possession of the property – with the court having no choice but to grant the application. This is called a mandatory ground for possession.
“Just the possibility that this could happen is making mortgage lenders and leasehold buyers nervous,” she added.
Leaseholders worried about ground rent can band together to buy the freehold of their block – eliminating the need for a ground rent altogether, provided certain criteria are met.
But this takes time and would require the support of other leaseholders in the block. There are other options:
- approach the freeholder for a deed of variation protecting against the issues caused by rising ground rents (but the freeholder does not have to agree to this)
- extend the length of the lease on the statutory basis (which also reduces the ground rent to a peppercorn, i.e. nothing at all).
Amy has just qualified as a Fellow of the Chartered Institute of Legal Executives (CILEx). Her work includes:
- helping leaseholders who want to extend the lease
- freehold purchases (by leaseholders using collective enfranchisement)
- helping leaseholders to change their block’s management company
- service charge disputes
- licence to alter – under most leases, the leaseholders must get the freeholder’s permission before making major alterations to their property.
Amy studied law at Bournemouth University from 2010 to 2014. She graduated with an LLB Hons degree. She joined Coles Miller the day after receiving her final university results.
For more information, contact residential leasehold legal executive Amy-Paige Gregory, 01202 355697.