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An update from Taylor Wimpey

CMA Leasehold Investigation Closure

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On Wednesday 22 December 2021, Taylor Wimpey plc announced that the CMA’s investigation into the historical sale of leasehold properties with doubling ground rent clauses by the company is closed, following the agreement of voluntary undertakings.

Taylor Wimpey has worked with the CMA constructively throughout their investigation with the desire to fully close the issue for the benefit of our customers and affected leaseholders.  Building on the company’s Ground Rent Review Assistance Scheme (GRRAS scheme) – which was launched voluntarily and proactively in 2017, we have given voluntary undertakings to the CMA. The CMA acknowledges that the GRRAS scheme has helped over 5,400 customers convert their ten-year doubling ground rent leases to an industry standard RPI-based structure, at Taylor Wimpey’s cost, and addressed the concerns raised regarding mortgageability or saleability of these properties.  

The undertakings mean that Taylor Wimpey is taking the following additional steps in respect of leases that contained a ten-year doubling ground rent clause when originally issued by Taylor Wimpey.

Where Taylor Wimpey is the freeholder:

  • With immediate effect, Taylor Wimpey will not collect any ground rent (above the initial ground rent) from leaseholders whose leases originally contained doubling clauses (whether or not their lease has already been converted to RPI through the GRRAS scheme).
  • For any leaseholder whose lease still contains a ten-year doubling ground rent clause, Taylor Wimpey will offer to formally vary their lease to remove the doubling ground rent clause, so that the leaseholder will pay only the initial ground rent, which will remain fixed.
  • For any leaseholder that has already gone through the GRRAS scheme and converted their doubling ground rent clause to an RPI-based structure, Taylor Wimpey will offer to formally vary their lease to remove the RPI escalation mechanism, so that the leaseholder will pay only the initial ground rent as set out in the lease, which will remain fixed.

The above will apply whether the leaseholder purchased their home from Taylor Wimpey directly, or from a previous owner.

Taylor Wimpey will proactively contact all its leaseholders with historic ten-year doubling ground rent leases by mid-February to set out the offer and next steps.

Where Taylor Wimpey is not the freeholder:

  • For any remaining ten-year doubling leases, Taylor Wimpey will make an offer to the owners of the freeholds, which has been agreed by the CMA, for them to remove the doubling ground rent clause from each lease and revert to the initial ground rent, which will remain fixed.
  • For any leaseholder that has gone through the GRRAS scheme and converted their doubling ground rent lease to an RPI-based structure, Taylor Wimpey will make an offer to the owners of the freeholds, which has been agreed by the CMA, for them to formally vary their lease to remove the RPI escalation mechanism, so that the leaseholder will pay only the initial ground rent, which will remain fixed.

Taylor Wimpey will proactively contact all its freeholders who own historic ten-year doubling ground rent leases during January 2022 to set out the offer and next steps. Once Taylor Wimpey has reached an agreement with each freeholder, the relevant leaseholders will be contacted with next steps.

If you are currently going through our Ground Rent Review Assistance Scheme and you would like to continue with your conversion to RPI, rather than waiting for the outcome of either process, as set out above, please let us know by emailing [email protected] and we will discuss next steps with you to continue your application.

For further information and guidance, please see the Frequently Asked Questions (FAQ) below.

Where Taylor Wimpey is the freeholder:

Where Taylor Wimpey is not freeholder: