In recent weeks there has been a deal of press and public indignation over ground rents that can double or more overnight. It is an issue that may be harbouring an avalanche of negligence claims against solicitors, according to Joshua Munro, a barrister at Hailsham Chambers.
He writes: “Purchasers of long-leasehold interests in property may regard themselves as the ‘owners’ of the property. However, many thousands have discovered that they are subject to covenants in favour of freeholders.
“When the true position is found out as to increasing ground rent liabilities, it is very likely that the long-leasehold owners will want to make claims. The problems are often remediable, via leasehold enfranchaisement and acquisition of a share of freehold, or an extension of the long lease’s term with reduction of ground rent to a peppercorn.