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I have to say that I am somewhat disappointed at many of the comments on this article.
It is clear that over the years many solicitors have been in cahoots with the site office of these developers and have been getting some form of kickback or other benefit. They will have written their standard report for the first property and then rolled it out for the rest of the clients recommended to them. They would not have been particularly keen to highlight an issue which may have put off the client. I don’t think it is enough to say to the client that the rent increases and the basis of the review is in the lease which we recommend you read. A solicitor is paid surely to give advice, not just regurgitate the provisions in different language.
Would you have bought a lease with such a rent review provision? If not then in my view that leaves you open to a claim if you let your client buy. I recently came across a 999 year lease with a rent of £250 doubling every 10 years. The client was surprised when I said he couldn’t buy it, but changed his mind when he did the calculation. After 100 years the rent was £34,000.00 and within about 250 years he would have paid off the national debt. However the seller had bought it and is now left with a worthless asset. There is your loss! There are National house builders out there who have come to a deal to compensate the investor who bought their reversion at 10/15 times the rental, and are now paying the legal costs for leases to be amended to RPI. Why would they do that if they didn’t realise there is a big issue and they will suffer reputational damage if they don’t do something about it.