Apologies if this this is the same link posted earlier – I couldn’t open it.
http://www.bbc.co.uk/news/business-38827661
Listened to a prog on R4 earlier in the year and was astounded that the practice is legal.
On a par with the developers who make a deal with broadband providers, leaving first time buyers stuck with shite broadband. Also legal, also shoddy.
This is currently the situation I am awaiting information on – I am a new homeowner who is one of millions now hoodwinked into this leasehold shitstorm. Our ground rent (not including a separate estates management charge) is £250 per year and as I understand it, tied to the RPI. Sadly not £2.50 as the OP states in his suspicious email hunt.. very interesting read.
Suffice to say my wife and I now know more about the ground rent we pay and as mentioned there is a government inquiry looking to ban the practice. It remains to be seen what will happen to our, and all out Neighbours rents. I’m in the NW of England, apparently a hot bed of unscrupulous practices with conveyencing.
I almost started a thread about this (don’t know if there has been one) as it’s caused my wife and I a ton of worry- ultimately looking a a house that we may potentially not be able to sell given the ground rent situation. The industry itself and associated conveyencers have conceded this a problem of the order of the PPI scandal. This is affecting millions of first time buyers.
A quick google throws up numerous Conveyencing advice forums and articles, all of which offer advice to those ‘professionals’ who may well be inline for legal action by disgruntled first time buyers. Nice eh.