Alistair Strathern, Labour MP for Hitchin, has said that he is "appalled" by the situation facing Hitchin residents subject to large ground rents.
Mr Strathern met with leaseholders on Watersmeet estate, off Grove Road in Hitchin, who currently have to pay ground rent of £300 per year to the freeholder of the land. A clause in their contracts allows the figure to double, with a rise to £600 per year expected by 2034.
Many banks refuse to lend to homeowners subject to such clauses, leaving them unable to sell their properties.
Leaseholders own their homes, but not the land on which they live. Rent on the land is therefore paid to the landlord.
Mr Strathern's meeting with Watersmeet leaseholders comes soon after other leaseholders in Hitchin were hit with a 9,000 per cent rise in their ground rent.
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Hitchin's new MP met residents of Watersmeet estate last week and has since written to Tulsense, the freeholder, urging changes to the contract. He has also asked for a meeting to try and ensure new terms can be established.
On top of the ground rent charges, residents have to pay more than £2,000 a year in management fees towards the maintenance of the estate.
Mr Strathern said: “I was appalled to hear the stories of the residents of Watersmeet, and the impact the current broken leasehold system and unfair ground rent terms is having on local families.
“It is completely unfair that they cannot sell their flats. Tulsesense must lower and cap their ground rent to ensure homeowners are not trapped.
“But, the stories of Watersmeet sadly are not isolated. I will be working with the new Labour government to reform leasehold and freehold, and end the broken system we have inherited.”
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