Home Residential Property Homeowners could be entitled to compensation

Homeowners could be entitled to compensation

by LLP Editor
25th Jun 21 5:12 pm

Despite Persimmon Homes and Aviva agreeing to change the way they operate in regard to leaseholds and ground rent charges, homeowners could still be entitled to compensation – according to an expert solicitor from law firm Nelsons.

Following an investigation by the Competition and Markets Authority (CMA), house builder Persimmon will allow its leaseholders to buy the freehold of their property at a discounted rate, capped at £2,000, and insurance company Aviva, which buys leaseholds from house builders, will repay homeowners who saw their ground rents double.

Nelsons is dealing with compensation claims from homeowners across the country who have been trapped in unsaleable homes due to onerous ground rent charges.

Daniel Brumpton, partner and head of Nelsons’ professional negligence team, said: “After the commitments announced by Persimmon and Aviva, the CMA is expecting other housing developers and investors to take similar action.

“Due to unfair ground rent charges, many people in the UK have been left in a position where they are stuck with homes they cannot sell or been faced with unexpectedly high prices to buy their freehold.

“While Persimmon is allowing its leaseholders to buy the freehold of their property at a discounted rate and Aviva is removing ground rent terms the CMA considers unfair and repaying homeowners who have seen rents double, homeowners could still have incurred a loss because someone didn’t advise them properly in the first place.

“We’re ready to help people who have found themselves unwillingly involved in a leasehold mis-selling scandal to bring a professional negligence claim against the conveyancing solicitor they instructed to help with the purchase of the property. If the solicitor failed to give clear advice about the existence and implications of the onerous ground rent clause, we can assist you in claiming compensation for damages due to negligence, which could then help towards the cost of buying the freehold.”

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