Originally posted by Macromia
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There is a similarity to he problem faced years ago with loans and the Consumer Credit Act sort to address the problem by making lenders publish an APR. As the rent rises then the premium should fall (although when the rent is small that does not appear to happen) the price the purchaser pays for that discount is the ground rent ie a form of interest .
Much mischief it is argued has arisen on lease extensions with ground rent terms not understood. A further refinement could be that ground rent terms can only be offered by those regulated under the Consumer Credit Act
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