• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Home
  • What is LKP
  • Find everything …
  • Contact
Donate

Leasehold Knowledge Management Logo

Secretariat of the All Party Parliamentary Group on leasehold reform

Mobile Menu

  • Home
  • What is LKP
  • Find everything …
  • Contact
  • Advice
  • News
    • Find everything …
    • About Peverel group
    • APPG
    • ARMA
    • Bellway
    • Benjamin Mire
    • Brixton Hill Court
    • Canary Riverside
    • Charter Quay
    • Chelsea Bridge Wharf
    • Cladding scandal
    • Competition and Markets Authority / OFT
    • Commonhold
    • Communities Select Committee
    • Conveyancing Association
    • Countrywide
    • MHCLG
    • E&J Capital Partners
    • Exit fees
    • FirstPort
    • Fleecehold
    • Forfeiture
    • FPRA
    • Gleeson Homes
    • Ground rent scandal
    • Hanover
    • House managers flat
    • House of Lords
    • Housing associations
    • Informal lease extension
    • Insurance
    • IRPM
    • JB Leitch
    • Jim Fitzpatrick MP
    • John Christodoulou
    • Justin Bates
    • Justin Madders MP
    • Law Commission
    • LEASE
    • Liam Spender
    • Local authority leasehold
    • London Assembly
    • Louie Burns
    • Martin Paine
    • McCarthy and Stone
    • Moskovitz / Gurvits
    • Mulberry Mews
    • National Leasehold Campaign
    • Oakland Court
    • Park Homes
    • Parliament
    • Persimmon
    • Peverel
    • Philip Rainey QC
    • Plantation Wharf
    • Press
    • Property tribunal
    • Prostitutes
    • Quadrangle House
    • Redrow
    • Retirement
    • Richard Davidoff
    • RICS
    • Right To Manage Federation
    • Roger Southam
    • Rooftop development
    • RTM
    • Sean Powell
    • SFO
    • Shared ownership
    • Sinclair Gardens Investments
    • Sir Ed Davey
    • Sir Peter Bottomley
    • St George’s Wharf
    • Subletting
    • Taylor Wimpey
    • Tchenguiz
    • Warwick Estates
    • West India Quay
    • William Waldorf Astor
    • Windrush Court
  • Parliament
  • Accreditation
  • [Custom]
Menu
  • Advice
  • News
      • Find everything …
      • About Peverel group
      • APPG
      • ARMA
      • Bellway
      • Benjamin Mire
      • Brixton Hill Court
      • Canary Riverside
      • Charter Quay
      • Chelsea Bridge Wharf
      • Cladding scandal
      • Competition and Markets Authority / OFT
      • Commonhold
      • Communities Select Committee
      • Conveyancing Association
      • Countrywide
      • MHCLG
      • E&J Capital Partners
      • Exit fees
      • FirstPort
      • Fleecehold
      • Forfeiture
      • FPRA
      • Gleeson Homes
      • Ground rent scandal
      • Hanover
      • House managers flat
      • House of Lords
      • Housing associations
      • Informal lease extension
      • Insurance
      • IRPM
      • JB Leitch
      • Jim Fitzpatrick MP
      • John Christodoulou
      • Justin Bates
      • Justin Madders MP
      • Law Commission
      • LEASE
      • Liam Spender
      • Local authority leasehold
      • London Assembly
      • Louie Burns
      • Martin Paine
      • McCarthy and Stone
      • Moskovitz / Gurvits
      • Mulberry Mews
      • National Leasehold Campaign
      • Oakland Court
      • Park Homes
      • Parliament
      • Persimmon
      • Peverel
      • Philip Rainey QC
      • Plantation Wharf
      • Press
      • Property tribunal
      • Prostitutes
      • Quadrangle House
      • Redrow
      • Retirement
      • Richard Davidoff
      • RICS
      • Right To Manage Federation
      • Roger Southam
      • Rooftop development
      • RTM
      • Sean Powell
      • SFO
      • Shared ownership
      • Sinclair Gardens Investments
      • Sir Ed Davey
      • Sir Peter Bottomley
      • St George’s Wharf
      • Subletting
      • Taylor Wimpey
      • Tchenguiz
      • Warwick Estates
      • West India Quay
      • William Waldorf Astor
      • Windrush Court
  • Parliament
  • Accreditation
You are here: Home / News / Cladding scandal / Taylor Wimpey has paid out only £11.2m of the supposed £130m to sort the doubling ground rent scam

Taylor Wimpey has paid out only £11.2m of the supposed £130m to sort the doubling ground rent scam

August 1, 2018 //  by Sebastian O'Kelly

… And £30 million to remove Grenfell cladding from the sites it built


Taylor Wimpey has paid out only £11.2 million of the £130 million it set aside to address the doubling ground rent scam it inflicted on its customers between 2007 and 2011.

During that period, the plc housebuilder dreamed up highly aggressive ground rent terms and thought the wheeze so brilliant it spread them to leasehold houses.

Meanwhile, it is also paying out to remove combustible Grenfell cladding – aluminium composite material – and has set aside £30 million to pay for this.

The only Taylor Wimpey site that we are aware of with Grenfell cladding is Glasgow Harbour, in Scotland where flats are not sold as leasehold tenancies and as a consequence freehold owners are not running off to the courts to establish that leaseholders are liable for the bill to remove the cladding.

For reputational reasons – and to reassure government that they are not completely irresponsible – plc housebuilders have stepped in to pay for the removal of the Grenfell cladding: Barratt did so at Citiscape, in Croydon, which it built as long ago as 2005; Taylor Wimpey at Glasgow Harbour and other sites; and the plc housebuilders’ usually tame warranty provider NHBC at Galliard’s 1,000 flat New Capital Quay, in Greenwich.

Meanwhile, it is an open question whether other developers pay up to meet the hills, as government hopes.

Australian firm Lendlease is showing no sign of doing so at its Manchester sites, Cypress Place and Vallea Court, which were taken to the tribunal last month by freehold speculator Pemberstone to establish that owners of leasehold tenancies are liable for the errors of others.

The tribunal found the leaseholders liable to pay for the cost of replacement cladding under the terms of their leases. It also found leaseholders liable to cover the costs of the ‘Waking Watch’ at Vallea Court, and it declined to make a section 20C order (a s20C order prevents that landlord from recovering the costs of going to the Tribunal through the service charge).

The Taylor Wimpey report refers to the ground rent scandal it created in suitably bland corporate fashion.

For example, it claims that it has set aside £130 million “following concerns raised by certain customers in the latter part of 2016 relating to the mortgageability and saleability of their homes due to the ground rents structure in their leases”.

That should read: following a nationwide scandal taken up by all media which has prompted the government to promise to ban leasehold houses and set new ground rents to as low as zero.

“The doubling clauses are considered to be entirely legal and are clearly set out in the relevant lease documentation. In addition, when buying their Taylor Wimpey property, all customers received independent legal advice as part of the standard conveyancing process. In line with general industry practice the relevant freehold reversions have been sold to a number of third parties over several years.”

A different view of Taylor Wimpey’s practices is offered by former customer – and victim of the doubling ground rent scam – Joanne Darbyshire, one of the founders of the National Leasehold Campaign Facebook group along with Katie Kendrick and Cath Williams.

More here:

APPG July 11: Taylor Wimpey deserves no praise for its cheating RPI ground rent relief scheme, says leasehold house customer

Taylor Wimpey plc
Half year results for the period ended 1 July 2018:

2018 H1 Statement_ FINAL

Related posts:

E and J Captial PartnersPensioner paid £38,000 for Taylor Wimpey freehold to ground rent speculators E&J Capital Partners Taylor Wimpey to pay £130 million to solve doubling ground rent scandal Pete Redfern tells LKP how Taylor Wimpey will sort the ground rent scandal Guardian reports the Taylor Wimpey £130m offer to settle ground rent scandal Taylor Wimpey CEO says doubling ground rent scandal under ‘review’. But Bottomley asks: ‘Have innocent homebuyers been shafted?’

Category: Cladding scandal, Latest News, NewsTag: Cypress Place, Joanne Darbyshire, Lendlease, Pemberstone, Taylor Wimpey, Vallea Court, Waking watch contracts

Latest Tweets

Tweets by @LKPleasehold

Mentions

Anthony Essien (34) APPG (37) ARMA (87) Bellway (30) Benjamin Mire (32) Cladding scandal (71) Clive Betts MP (31) CMA (45) Commonhold (52) Competition and Markets Authority (41) Countryside Properties plc (33) FirstPort (42) Grenfell cladding (56) Ground rents (54) Harry Scoffin (150) James Brokenshire MP (31) Jim Fitzpatrick (35) Jim Fitzpatrick MP (30) Justin Bates (40) Justin Madders MP (67) Katie Kendrick (37) Law Commission (60) LEASE (66) Leasehold Advisory Service (62) Leasehold houses (32) Long Harbour (48) Martin Boyd (80) McCarthy and Stone (39) National Leasehold Campaign (38) Persimmon (49) Peverel (61) Property tribunal (49) Redrow (30) Retirement (37) Robert Jenrick (33) Roger Southam (47) Sajid Javid (38) Sebastian O’Kelly (55) Sir Peter Bottomley (201) Taylor Wimpey (106) Tchenguiz (33) The Guardian (33) The Times (31) Vincent Tchenguiz (43) Waking watch contracts (40)
Previous Post: « Is LEASE an institutionally corrupted organisation?
Next Post: £3m Grenfell cladding bills fall on residents at Lendlease’s Cypress Place and Vallea Court »

Reader Interactions

Comments

  1. Michael Hollands

    August 1, 2018 at 10:43 am

    It is unlikely that TW will have to pay out anywhere near the £130million they have set aside. This is because their offer of RPI ground rent instead of Doubling is not acceptable to most leaseholders.
    With TW likely to get Tax Relief on the £130million it could even prove to be a profitable move for them.
    The only answer which will satisfy all parties and restore TW’s reputation is for them to buy back the freeholds and sell them to their leaseholders at the price quoted when they first sold the property.
    This should have been done two years ago.

    • Brad

      August 1, 2018 at 1:12 pm

      TW had a reputation?!

      • Michael Hollands

        August 1, 2018 at 1:30 pm

        The old Taylor Woodrow had an excellent reputation under the control of Sir Frank Taylor.
        I think it was around 2005 when Wimpeys took part control and 2007 when the ground rent scam began. Which was disastrous for thousands of young families and depressing for those who worked for the old Taylor Woodrow and can remember the reputation they once had.

Above Footer

Advising leaseholders. Avoiding disasters.
Stopping forfeiture. Exposing abuses. Urging reform.

We depend on individuals for the majority of our funding.

Support Us and Donate

LKP Managing Agents

Become an LKP Managing Agent

Common Ground
Adam Church
Blocnet property management2

Stay in Touch

To achieve victory in the leasehold game where you are playing against professionals and with rules that they know all too well - stay informed with the LKP newsletter.
Sign Up for Newsletter

Professional Directory

The following advertisements are from firms that seek business from leaseholders.
Click on the logos for company profiles.

Footer

About LKP

  • What is LKP
  • Privacy and data

Categories

  • News
  • Cladding scandal
  • Commonhold
  • Law Commission
  • Fleecehold
  • Parliament
  • Press
  • APPG

Contact

Leasehold Knowledge Partnership
Open Data Institute
5th Floor
Kings Place
London N1 9AG

sok@leaseholdknowledge.com

Copyright © 2023 Leasehold Knowledge Partnership | All rights reserved
Leasehold Knowledge Partnership Limited (company number: 08999652) is a company limited by guarantee that is a registered charity (number: 1162584) with the Charities Commission.
LKP website is hosted at www.34sp.com
Website by Callia Web