Pensioner, 90, hit with £17,000 ground rent bill – as next government faces call to abolish ‘medieval leasehold system’
A 90-year-old pensioner who has paid off his mortgage is having “sleepless nights” after being hit with a “feudal” £17,000 bill for ground rent.
Derek Taylor is one of five leaseholders at Elgin House, North Herts, whose annual ground rent has risen from £25 to £2,350 – an increase of 9,000%.
The rise has been backdated to 2018, meaning he now owes £17,169 in one lump sum and is facing legal action if he does not pay.
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The case has renewed calls for the next government to abolish England’s centuries-old leasehold system, which campaigners say is “feudal” and “exploitative”.
A ground rent is a charge leaseholders have to pay so they can have a home on land they do not own and does not require a service in return.
Derek Taylor owns his home but under the leasehold system, is required to pay rent to the owner of the land it is built on
The Tories promised to effectively abolish these charges in their 2019 manifesto, but the long-awaited legislation aimed at doing this now hangs in the balance following Rishi Sunak’s decision to hold a snap general election.
Read More: ‘Buying a flat ruined my life’: Leaseholders plead for tougher legislation
Derek, who has lived in the property for 50 years and paid off his mortgage, told Sky News: “We were asked to send £17,000 plus pounds and about a fortnight later we got a letter saying this amount is outstanding and if it’s not paid in five days, we have no course but to take you to court.
“That caused a lot of upset because who can simply pay that amount of money?
“The letter upset me because it was very threatening. You wake up in the night and can’t get to sleep again because it’s on your mind.”
The letter was sent to Derek by solicitors Salter Rex on behalf of the freeholder Quadron. They did not respond to a request for comment.
‘Let down by government’
The ground rent for these properties is now over £2,000 a year
It said £17,169 is outstanding on his account and if he does not pay “we will have no alternative but to commence legal proceedings”. It added that a £120 administration fee will be charged on top of that if no money is paid within five days.
The ground rent increase is allowed under the terms of Derek’s lease, drawn up in the 1960s, which said the fee could be reviewed in March 2018 and every 50 years after in line with the annual value of the land.
Derek and his neighbours, who were not aware of the clause, took the case to arbitration but it was ruled that the rise was allowed and the lease agreement “includes no requirement for the level of rent to be “reasonable”.
Derek, a former print worker, said: “It’s simply because they can. Legally that may be so but whatever way you look at it we can’t see that this is fair.
“We feel let down (by the government). This has been going on so long, it should have been sorted out a long time ago and when this bill does eventually get passed we don’t know if it will apply to our situation at all.”
Derek is due to meet his local MP Bim Afolami, who is also the economic minister, next week to discuss the issue.
In a newsletter to constituents seen by Sky News, Mr Afolami said he was aware of the situation and the government is “committed to removing these terrible practices”.
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Labour’s Barry Gardiner says leaseholders face ‘exorbitant’ ground rents for ‘no service’
‘Leaseholders in limbo’
At the last election in 2019, the Tories promised to reduce ground rent to a zero “peppercorn” rate.
But the Leasehold and Freehold Reform Bill, which was meant to be the mechanism for doing this, was only introduced to the House of Commons in November last year and is yet to be given Royal Assent.
The policy will be considered in the House of Lords later as part of the “wash-up” period, when the final bills that will become law are rushed through parliament before it is dissolved for an election.
The National Leasehold Campaign (NLC) has welcomed this news, amid fears the bill would be killed, but said the “devil is in the detail” as it is not clear if a cap on ground rents will be included in the final draft of the legislation.
This was due to be added to the bill as an amendment, but there have been reports for months that the Treasury wants to block the policy because it is worried about spooking insurers and pension funds that have amassed vast freehold portfolios.
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Katie Kendrick, co-founder of the NLC told Sky News: “Leaseholders remain in a state of ‘Leasehold Limbo’ wondering if they will be helped by this bill.
“It remains to be seen how far this bill will go but rest assured that there will still be some way to go to achieve our goal of abolishing Leasehold and a move to Commonhold.
“Abolishing the medieval leasehold system must be in all manifestos and any incoming government must prioritise this.”
Where do the parties stand on leasehold reform?
The issue could be a dividing line in the general election campaign, amid a wider housing crisis which at its heart is a problem of insufficient supply and spiralling affordability.
Labour has said they will abolish leasehold, but recently pushed back the timeline for doing so, blaming the Tories for watering down their own proposals.
Housing Secretary Michael Gove initially said he wanted to abolish the system, calling it “feudal”, but his bill only went as far as to ban leasehold on the sale of new houses.
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Gove speaking in 2023 says he wants to abolish ‘unfair’ leasehold system
Houses make up a small portion of around five million leasehold properties across England, most of which are flats.
Other provisions of the legislation include making it cheaper and easier for people to extend their leases, buy the freehold and gain the right to manage their buildings.
But whatever measures are ultimately enacted, for some leaseholders it will be too little too late.
Freeholders ‘cashing in’
Derek’s neighbour David Pickett ended up borrowing £54,000 from family members to change the terms of his lease so that moving forward, his ground rent will be £0.
The rise in ground rent risked leaving him trapped as it significantly devalued the property he poured his savings into, putting him at risk of negative equity and reducing his chances of selling it.
David Pickett had to pay £54,000 to renegotiate his lease and remove the ground rent clause
The payment included £15,000 in backdated ground rent and a £34,000 premium – a fee David says is around seven times higher than three other neighbours in identical properties who renegotiated their lease terms in 2016. They have a fixed ground rent of £100 a year and paid a premium of between £4,000 to £5,000.
However, for communications worker David that was not an option.
“Everything is done in mathematical formulas that are hard to understand, the language they use is so cold,” he said.
The 31-year-old said delays to leasehold reforms have allowed freeholders to “cash in” on people like him and Derek.
“Part of the reason we delayed to arbitration and tried to push this as far back as possible is because we thought these reforms were coming soon and when we were getting legal advice they were talking about this bill so we always had this hope.
“Now it just feels like that flame has been extinguished.
“It feels like there is nowhere to turn for help and anyone that can help wants £200 an hour.”
Prince William has posted a picture of him and his father, King Charles, playing football to mark Father’s Day.
In the photograph, the young prince smiles as he and the future monarch stand in a garden.
The royal youngster is pictured wearing dungarees and a striped shirt, while Charles looks relaxed in a double-breasted suit jacket.
The picture of the two future kings was taken on 12 June, 1984 in the gardens of Kensington Palace.
Later that same year William would gain a younger brother, with the Duke of Sussex born in September.
As well as marking Father’s Day, the football-themed image is perhaps a nod to England’s opening match in the Euros, which takes place on Sunday night.
Modern day: Prince William and King Charles on the palace balcony yesterday. Pic: PA
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It comes a day after the pair were involved in the Trooping of the Colour festivities at Buckingham Palace on Saturday.
The Prince of Wales was joined by his wife, Princess Kate – her first public appearance since the announcement of her cancer diagnosis.
Also with them were their three children, Prince George, Princess Charlotte and Prince Louis, the youngest of whom is no stranger to the spotlight at such events.
UK
England v Serbia: Gareth Southgate tells fans he ‘expects everybody to enjoy the football’ when asked about match security risk
Gareth Southgate has said he “expects everybody to enjoy the football” when asked about the heightened security risk of England’s opening Euros match against Serbia.
The England manager was responding to a question at a pre-match news conference on Saturday about the decision to ramp up security measures for today’s game in Gelsenkirchen.
Asked for his message to supporters, he said: “I expect everybody to enjoy the football.
“I’ve been fortunate to be involved in a lot of tournaments, and travel to tournaments I’ve not been directly involved in.
“They’re great carnivals of football – an opportunity to see a different part of the world and meet people from other parts of the world, have a brilliant time, so I’m sure everybody is coming to do that.”
He added: “I hope the whole of Europe can come together for the brilliant game that we’re involved in and support their team.”
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England-Serbia match ‘high risk’
Officials have designated England’s opening fixture as a “high-risk” event, with fans served lower-alcohol beer in the stadium and banned from drinking in the stands.
More than 300,000 British fans are travelling to Germany for Euro 2024, making it their highest attendance since Euro 2016 in France.
England fans in Gelsenkirchen. Pic: PA
Policing the first game has been made more challenging by UEFA asking for the barriers to be removed inside the stadium, with both sides being seated closer together, and two-thirds of tickets going to mixed areas.
Southgate ‘relaxed’ that this is likely his final Euros
Entering his fourth tournament as England manager, Gareth Southgate is looking to the future.
There is 20-year-old Jude Bellingham being appointed to the leadership group.
A squad with only half its players retained from the 2022 World Cup.
And the manager himself is looking at a time when the Three Lions dugout is filled by someone else.
“I hate to put pressure on all the coaches,” the 53-year-old said. “But it could be the last tournament for all of them.”
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German police Chief Inspector Christof Burghardt told Sky News previously: “I think it’s a very high-risk game because of the history, because of the hooligans both sides have.
“Serbia has many hooligans. The English guys, with alcohol, they are sometimes very aggressive. So it’s a great job to do this, to prepare, so that hopefully nothing will happen.”
Gareth Southgate and Harry Kane. Pic: Reuters
Footballing deaths a ‘great shock’
At the joint news conference with captain Harry Kane on Saturday, Southgate was also asked about the deaths announced today of two footballing figures – former Arsenal and Everton star Kevin Campell and Millwall and Montenegro goalkeeper Matija Sarkic.
Southgate said “both pieces of news were received with shock and great sadness”, acknowledging that the England players who have played with Sarkic are “feeling that even more”.
Matija Sarkic. Pic: PA
He recalled playing with Campbell, who died aged 54, at Arsenal, describing him as a “hugely popular man”.
“Kevin was the same age as me… his son has been in our junior pathway as well. Our thoughts are very much with his family at this time,” he said.
Kevin Campbell. Pic: PA
Both men said they are expecting Sunday’s game to be a challenge.
Kane told reporters: “We’re expecting a really tough game.”
Southgate added: “There are a lot of good teams in this tournament and we have to be exceptional to progress, firstly through the group, and then to have the opportunity to go further.”
Entering his fourth tournament as England manager, Gareth Southgate is looking to the future.
There is 20-year-old Jude Bellingham being appointed to the leadership group.
A squad with only half its players retained from the 2022 World Cup.
And the manager himself is looking at a time when the Three Lions dugout is filled by someone else.
“I hate to put pressure on all the coaches,” the 53 year old said. “But it could be the last tournament for all of them.
“So this is the world we’re in. I’m probably more relaxed about it because I’ve been to three. I know exactly what it involves, I know the events you have to deal with.”
Events that begin on Sunday night in Gelsenkirchen with their Euro 2024 group opener against Serbia.
It is three years since they went all the way in the competition – reaching the final at Wembley only to lose in the shootout to Italy.
Since then there has been Qatar, where England couldn’t make it to the last-four as they did at the 2018 World Cup – losing the quarter-final to France.
It could be France posing the greatest threat again, although hosts Germany were formidable in the 5-1 humbling of Scotland in the Euros curtain-raiser on Friday night.
Harry Kane and Gareth Southgate (right) at a pre-match news conference in Gelsenkirchen. Pic: PA
Read more
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England v Serbia deemed ‘high-risk’ game
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What chance is there of a first trophy for England’s men since 1966?
“We’ve earned the right to be, I guess, classed as one of the favourites,” captain Harry Kane said.
“Ultimately, we’re here to win it. And there will be nothing better for us and the nation itself if we do that.”
It would be a first career trophy for Kane whose move to Germany in the last year, to play for Bayern Munich, has unexpectedly not produced silverware for the former Tottenham striker.
“I think winning a major tournament with England would be one of the pinnacles of anyone’s career so that is the aim,” he said.
“For me personally, the trophies haven’t quite happened yet but it just makes me more determined and hungry to go out there and do that.”
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Kane and Southgate talk ahead of first match
And no player scored more goals in Europe last season than Kane – netting 44 times in all competitions.There was an impressive debut season with an England teammate – Bellingham scoring 23 goals for Real Madrid when not even a centre forward and only just out of his teens.
Now the prolific duo are linking up again for their country.
Kane said: “I think we complement each other really well. Whether one of us is dropping deep, the other one running in behind and vice versa.
“So an amazing player to play with. He likes to get in the box, he likes to affect games and score goals, which is always important for an attacking midfielder.
“So I think the more we train with each other, the more we play with each other, hopefully that relationship can get even stronger. But it’s so strong already.”
At England’s training session this week. Pic: Reuters
Southgate has also brought Bellingham into the leadership group with Kane, midfielder Declan Rice and defender Kyle Walker.
“There’s a different dynamic to this group,” Southgate said. “There’s a lot of younger players, and I want to make sure that the voices of the younger players, that I’m really in touch with that as well.
“So I don’t want to leave here with any stone unturned. I don’t want to have missed anything.
“And, it’s always important to know what the players are thinking. They have good views. They have good experiences.
“And also, there will be some decisions that I will take without talking to any of them.”
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