Who to Blame? - Ignorance !

Origin of Scandal

What makes ground rent scandal a scandal is the unjustified nature of the payments received by freeholders through the leaseholders over the years. These payment consist of the initial fee which is a one-time payment made to buy the house. This part can be justified but the valuation and how much as the price of the house, is correct, is still a question to many and can't be easily answered.

What caused it

The ground rent scandal carries certain features which made it illegal and unacceptable. On top of basic house fee, there are charges in the form of ground rent, which is basically the price the leaseholder has to pay for indirectly having the authority over the land on which the house is built as this land price is constantly rising perpetually in time value of the land. This part, though might sound rational, but still remains a big question mark because the leaseholder never really owned the house and the house and land both go back to the freeholder after the leasehold term is over and the payments made as ground rent become absurd in realistic and practical domain. hence this very well count as exploitation and manipulation on the ground of blinding and unfair practices which have been there for decades. Though only in the past few years, these ground rent amount became so abruptly high to be counted as a scandal. The third part which comes to this entire scenario is the price paid for making any changes in the house or property. Since the leaseholder never really owns the property and never gets the full control over it, a charge is applied for each and every change they make to the house and the amount determined is again something which can be always questioned and disputed.

Who is to blame

The blame for this particular situation can be put on both the leaseholder and freeholder in parts. Freeholders have fully exploited their chance to attain more cash flow while leaseholder never took enough care to understand the broader picture. Hence empowerment through information is the key.