Insurance company Aviva, which buys leases from homebuilders, will reimburse homeowners whose ground rent has been doubled. Change: Aviva has agreed with the CMA to remove « doubling clauses » in lease agreements Although Persimmon and Aviva agreed this week to change the way they work in terms of lease and rental interests, landlords may still be entitled to compensation. She bought the house near Bolton in 2010 for £400,000 – and two years later Taylor Wimpey sold the lease to Adriatic Land, which is now held by a division called Longharbour. Volume home builder Persimmon agreed to introduce measures to compensate buyers of hereditary building rights after the Competition and Markets Authority investigated the homebuilder. Budget investigation: The Competition and Markets Authority`s agreement with Aviva and Persimmon comes as it conducts an investigation into the rental sector Andrea Coscelli, CMA`s chief executive, said the commitments made by the two companies were « a real victory for thousands of tenants. There are a few exceptions to the new rules set out in the bill, although they are unlikely to affect the majority of new home buyers who will adopt hereditary property in the future. These exceptions include: For several years, Persimmon has been running its Right to Purchase program, where lease owners can purchase ownership of their property in Persimmon. « As specialists in the field of hereditary construction law, we would like to see how and especially when these two major players will change their procedures to allow tenants to buy the property – and above all, at what discount? In addition to banning the sale of new homes as a hereditary lease, the government will introduce plans that will allow tenants to extend their leases for 990 years, while abolishing their lease payments. In recent years, homebuilders have sold new properties to buyers on a rental basis, which means that the home builder has retained ownership of the property. In many cases, homebuilders then sold the property to third parties, such as investment companies .B.

Aviva and Persimmon agreed to offer concessions to tenants stuck in properties with rising ground rents. The government began discussing the overhaul of the rental system in 2017 and announced a series of proposals earlier this year. Last September, the CMA took enforcement action against Persimmon, Barratt Developments, Countryside and Taylor Wimpey in connection with lease agreements and « potential errors. » Although Persimmon allows its tenants to buy ownership of their property at a discounted price and Aviva removes lease terms that the CMA deems unfair and reimburses landlords who have doubled rents, landlords may still have suffered a loss because someone did not advise them properly. Home builder Persimmon will allow its tenants to buy ownership of their property at a discount. Today`s announcement is another step towards the problems of hereditary leasehold homes and punitive landlords, which are finally being resolved. If you are a tenant who has purchased a new property in the last ten years, you should review your lease to see what it says about the lease and what you can expect. In response to the CMA`s announcement, Persimmon said it stopped selling leasehold homes four years ago and had a program in place to help tenants buy their property below market value. An online calculator is created to determine how much tenants should pay when renewing leases or buying condos, potentially preventing free landlords from offering excessive prices. Dean Finch, chief executive of Persimmon Group, said the deal demonstrated the company`s « determination to work with integrity. » Housing Secretary Robert Jenrick said the deal with Aviva and Persimmon was an « extremely important step and demonstrates our commitment to supporting existing tenants who may have been poorly sold properties. » He said: « The government has long promised reforms, but its next bill is a missed opportunity to help existing tenants. The government needs to go further and faster to help existing tenants.

The Autorité de la concurrence et des marchés (CMA) launched its investigation into hereditary building rights in 2019 because it feared tenants would face huge and unexpected increases in the cost of buying a property or massive increases in rental interest. For customers who have already purchased their land properties under the homebuilder`s existing Right to Purchase programme – which allows buyers of hereditary building rights to acquire the property below market value – they can get the difference between the price paid and the £2,000 refund. You must still own the land. When a rented apartment or house is sold for the first time, a lease is granted for a certain period of time, usually between 99 and 125 years, but sometimes up to 999 years – although people can renew their lease or buy the property. In 2017, it turned out that some homebuilders had sold homes as a hereditary lease with onerous terms. Today (June 23), Persimmon announced that it has stopped selling leasehold homes this year and launched its Right to Buy initiative. « This may be the beginning of a journey to a fairer system for tenants, but I suspect there`s still a long way to go and it`s crucial for tenants to get the right advice now. » Thousands of homeowners could be eligible for larger refunds after Persimmon and Aviva promised the UK competition authority to change the terms of their leases. .