Homeowners under a leasehold are paying a total of £447m a year in ground rent, according to new data from NAEA Property mark.
This comes to an average of £319 per owner, 9 per cent of whom report that doing so affects their quality of life.
The insight comes from Propertymark’s latest report on leaseholds, which surveyed over 1,000 people with a leasehold.
Propertymark’s report adds that 36 per cent of those asked fear that they would not be able to afford to continue living in their home if ground rent were to rise, while 6 per cent are already in this situation.
Of those 10 per cent who have seen their ground rent go up since moving in, 46 per cent said that if they had known this would have happened, they would have thought twice about their purchase.
NAEA Propertymark chief executive Mark Hayward comments: “Even though many leasehold contracts include a ‘ten-year ground-rent freeze’, most developers sell the freehold onto a third party within a few years of completion and those terms go out the window, meaning homeowners are faced with unexpected and escalating costs.
“It’s positive to see action being taken, with the recent announcement that the CMA will be investigating the mis-selling of leasehold properties, as for too long, housebuilders and developers have not been transparent enough about what it actually means to buy a leasehold property,” he concludes.
Leasehold Advisory Service interim chair Wanda Goldwag adds: “If you are unsure about your ground rent and whether it increases, please get in touch with us at LEASE. We can review the lease and establish if there is an escalating ground rent and whether your freeholder is a signatory to the pledge unveiled by the Communities Secretary, James Brokenshire MP, on 28 March, to assist existing leaseholders trapped in onerous deals.”