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Britain’s competition watchdog has declared a win for thousands of people caught up in the UK’s leasehold scandal.
The Competition and Markets Authority has secured formal commitments from investment group Aviva and housebuilder Persimmon that will help customers who bought homes on leasehold, rather than owning the freehold.
Aviva is one of several investment companies who bought freeholds from housebuilders.
Some leaseholds on new developments stated that ground rents would double every 10 years.
This left leaseholders trapped in spiralling ground rent contracts, making some homes unmortgageable, and leaving owners unable to move and facing hefty bills – prompting the government to bring forward reforms:
Aviva has agreed to remove controversial and unfair ground rent terms that saw the ground rents paid by leaseholders double every 10 or 15 years, and to repay those who have lost out through those rising ground rents.
The…
