The issue of Blythe Court flats being sold with exorbitant ground rents is the subject of a website article by international property law giant Hogan Lovells.
The article can be read in full here
It reports how Sir Peter Bottomley intervened to stop the sale of 1 Blythe Court, which was to have been auctioned on February 2 by Barnard Marcus auctions.
The article begins:
On 21 January, Sir Peter Bottomley MP tabled an early day motion in the House of Commons requesting that Flat 1 Blythe Court, Solihull, be withdrawn from an upcoming auction.
The motion was tabled because the sellers were apparently “withholding essential information of penal ground rent provision that make the premises worthless”.
The property was indeed withdrawn and the legal pack removed from the auctioneer’s website.
Hogan Lovells obtained a copy of the lease from the Land Registry. It then reproduced a table showing ground rents increasing from £250 in 1961 to an astronomic £8,192,000 by the year 2111.
It notes: “Had the ground rent at 1 Blythe Court been described in the lease by using the table below instead of a formula, we very much doubt the leaseholder would have agreed to it.
“If tenants and leaseholders are offered fixed rent increases, they should tread carefully and make sure they understand what they are signing up to.”