Leaseholders

Offer to vary leases to remove doubling ground rent clauses

Countryside is currently the freeholder of a number of long residential leases which contain a clause which causes the ground rent to double more frequently than every 20 years (the “Relevant Leases” which contain a “Doubling Clause”).

As you may be aware, Countryside entered into undertakings with the Competition and Markets Authority (“CMA”) on 13 September 2021 (the “CS Undertakings”) following the CMA’s consumer investigation into the leasehold housing market, specifically into the use of Doubling Clauses.[1]

Pursuant to paragraph 4(a) of the CS Undertakings, this notice comprises an offer (subject to contract) by Countryside to each leaseholder of a Relevant Lease (the “Relevant Leaseholders”) to vary the terms of their lease by removing the Doubling Clause, at no cost to the Relevant Leaseholders. This offer applies even if the Relevant Lease initially contained a Doubling Clause but was later varied such the ground rent was to be reviewed in line with the Retail Prices Index. Removal of the clause will have the result that the Relevant Leaseholder’s ground rent will remain at the initial rent imposed through the term – i.e. there will be no review. No other terms of the Relevant Leases are affected and the Relevant Leases shall otherwise continue in full force and effect. Please note that Countryside is also communicating this offer separately in writing to each Relevant Leaseholder in writing. To confirm whether you may be a Relevant Leaseholder, please refer to the table below listing each development with Relevant Leases.

We invite each Relevant Leaseholder to contact us at their earliest convenience indicating whether they wish to accept this offer either by post (to The Company Secretary Countryside House The Drive Brentwood Essex CM13 3AT) or by email (to [email protected]). When responding, please ensure that you clearly include your name and postal address. Should you prefer to correspond by email, please also include your preferred email address.

Should you accept the offer, Countryside will be in touch to make the necessary arrangements to vary the Relevant Lease. Should you not contact Countryside or accept the offer, Countryside will repeat this offer annually for a two-year period.

For the avoidance of doubt, please note that, regardless of whether Relevant Leaseholders accept the offer, Countryside will not rely on any Doubling Clause within Relevant Leases.

[1] For further details on the CMA’s leasehold investigation (including a copy of the CS Undertakings), please refer to the CMA’s case page available at https://www.gov.uk/cma-cases/leasehold.