Statement on doubling ground rent clauses
Our statement on how we've been cooperating with the Competition and Markets Authority’s (CMA) investigation into the leasehold market’s use of certain types of ground rent doubling clauses.
L&Q's statement
L&Q has been cooperating with the Competition and Markets Authority’s (CMA) investigation into the leasehold market's use of certain types of ground rent doubling clauses.
Whilst a not-for-profit housing association, L&Q provides homes for outright sale and shared ownership to fund its wider social activities. Part of this involves acquiring freehold interests, homes and leases from commercial developers on occasion.
The CMA’s investigation has included tracing transactions where developers have sold freeholder rights in leases to third parties. As a result of this, we’ve identified a small number of occasions in the early phases of Acton Gardens where freeholder rights in some outright sale leases containing these clauses were acquired by L&Q from the developer. We provided this information to the CMA.
L&Q has not used these clauses to increase ground rents, and we’ve agreed to take action to amend these leases.
We’ve reached out to all affected leaseholders with an offer to remove the doubling ground rent clauses and retain the leases at their initial ground rent for the life of the lease. This will come at no cost to the leaseholders.
L&Q is committed to taking a fair and transparent approach to the leases we offer. We’re reviewing our approach to all ground rents and leases in response to the recent CMA investigation and will share any resulting changes to arrangements with affected residents once agreed.
If you're an affected leaseholder and would like to vary your lease or have any questions about the process, please don't hesitate to email our Homeownership team.