Firms who provided ground rent advice face risk of claim
A law firm has recently revealed that claims against solicitors over advice on ground rent clauses are likely to rise.
As part of research into professional negligence risks stemming from the wider economy, BLM found that 400 claims from disgruntled home buyers had been submitted in under a year. Conveyancing fraud was another risk facing the profession which the research highlighted, as well as undersettling and the discount rate.
Seeking to analyse and forecast the impact of economic forces on London insurance market claims, the BLM report was made collaboratively with the Institute of Directors, forming the latest instalment in their Trends Series on Macroeconomics.
Drawing attention to key issues faced by law firms, the report questioned the clarity of advice given to buyers, ensuring that they understood the effect of the ground rent increasing later down the line.
Whilst it highlighted the recent commitments made by the government, the report recognised that it would take time before the benefit of these changes would come into effect. As a result, those who have advised on a ground rent purchase may still be at risk.