National Trust criticised over tenant rent increases

25 Aug 2017 News

The National Trust has been criticised over increases to ground rents for leasehold properties, but says that tenants were inadequately advised when they bought their homes. 

According to the Times, some tenants faced increases of up to 10,000 per cent, and the Tenants Association of the National Trust is calling for an inquiry. The story has also been covered in the Telegraph and the Express.

In one case, an 87-year-old resident was told his payments would increase from £148 to £15,000 per year, the newspapers reported. 

The charity said that the increases were because government legislation determines how ground rent is calculated, often basing the amount due on the current value of the land. 

The Trust added that around 300 properties could be affected. These were tenants who bought their homes under "long leases" which originally lasted more than 21 years. Under the Leasehold Reform Act, tenants are able extend their leases by up to 50 years if they pay a "modern ground rent", but provisions within these leases can trigger increases at certain points later on. 

‘We have been working to reduce the rent’ 

The National Trust said it was aware of the distress caused and that it is working with tenants to resolve the situation. 

In a statement on its website, the charity said: “Some long leasehold tenants were not aware of the way in which modern ground rents work and had not been properly advised by their solicitors or valuers when they bought their properties."

This means that they had “understandably been taken by surprise by the higher level of rent charged". The Trust said it is working with them to find "a fair solution”. 

The statement added: “We have listened to the concerns of leaseholders who were affected and have agreed in the relevant cases that it is fair to share the financial impact and have reduced the modern ground rents by 50 per cent.” 

To do this it needed to obtain permission from the Charity Commission, which was granted.

The charity added that it would consider foregoing ground rent altogether for some tenants. 

“We know that some leaseholders feel they have been misled as to the impact of modern ground rent and we take those concerns very seriously,” it said. “If we are satisfied that that has happened then we will consider foregoing modern ground rent altogether, which we have already done in one case.” 


 

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