Taylor Wimpey have recently introduced their “Ground Rent Review Assistance Scheme” which is designed to help property owners who bought their leasehold property from Taylor Wimpey under a lease which required payment of a ground rent which doubles every 10 years.
The most up to date information on the scheme can be found at www.taylorwimpey.co.uk/leaseholdfaq. This website also includes a link to the online application for inclusion in the scheme.
Taylor Wimpey have reached agreement with many of the organisations who subsequently purchased Taylor Wimpey’s freehold interest to amend the ground rent payable under those leases to a scheme more favourable to leaseholders. The precise terms of any agreement will depend upon who the freeholder is but usually this will involve an increase in ground rent calculated by reference to the Retail Prices Index (RPI) rather than a ground rent that doubles in each 10 year period of the lease. This is an increase that mortgage companies appear to be generally satisfied with and so it should ensure that your property can be mortgaged and therefore sold.
IMPORTANT POINTS TO KNOW ABOUT THE SCHEME
- It applies to flats and houses.
- It only applies where the ground rent doubles every 10 years.
- It only applies if you bought directly from Taylor Wimpey and still own your property.
- It does not apply if you own the property as a Company or other corporate entity.
- It’s not guaranteed – there is no legal obligation for Taylor Wimpey to offer the Scheme and it relies on Taylor Wimpey reaching an agreement with your current landlord. If they can’t reach agreement with them, they can’t offer the scheme to you.
- Where the Scheme does apply Taylor Wimpey will pay up to £750 towards your legal costs.
If you are thinking of extending the lease of your property or buying the freehold, where it is a Taylor Wimpey home to which the scheme applies, it is likely to be more cost effective for you to participate in the scheme and then subsequently extend the lease or buy the freehold. This is because the improved ground rent clause acquired by participating in the scheme will likely make it considerably cheaper to then extend the lease or buy the freehold.
Clarke Mairs has extensive knowledge and expertise in residential leasehold matters and can guide you through the whole process – from initially applying to the scheme through to completion – providing clear advice at each stage.
We will limit our fees for dealing with the matter to the £750 paid by Taylor Wimpey.
For further information about the Taylor Wimpey Ground Rent Review Assistance Scheme and how Clarke Mairs can assist you in taking the benefit of that scheme please contact Erin Iley directly at firstname.lastname@example.org.