Adriatic Land 3 Limited and Abacus Land 4 Limited agreement with Miller Homes Limited

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For Leases granted by Miller Homes Limited that were acquired by Adriatic at Silsoe and Abacus at Fairfield Drive

We are pleased to confirm that, following an agreement between developer Miller Homes with Adriatic and Abacus, Adriatic and Abacus will offer to remove rent review clauses from 3 leases at Silsoe and one lease at Fairfield Drive respectively, originally granted by Miller Homes with rent review clauses doubling more frequently than every 20 years (Doubling Clauses).

This follows discussions entered into by Miller Homes with the CMA relating to leases with Doubling Clauses, including those where Miller Homes had sold its interest in those leases on to freeholders like Adriatic.

As a result of offers made by Miller Homes to Adriatic and Abacus, Adriatic and Abacus offer to vary the agreed leases at Silsoe and Fairfield Drive respectively, for the benefit of the leaseholders, to remove the clause increasing ground rent completely.

The offer to vary the leases is open for a period of two years, or until all the relevant leases have been varied, if this is completed earlier. HomeGround will be administering the variations on behalf of Adriatic and Abacus. The key elements of the offer to vary are as follows:

• The rent review clause in the leases will be removed entirely, meaning the ground rent remains at the level set at commencement, and will not be increased during the term
• Adriatic and Abacus will respectively meet its own costs of the variation and no costs or fees need to be paid by leaseholders to Adriatic, Abacus or HomeGround
• Adriatic and Abacus will meet their respective leaseholders’ legal costs in connection with appointing their own solicitor up to a capped maximum sum agreed with Miller Homes

We have written to respective leaseholders of Silsoe and Fairfield Drive who own leases originally granted with Doubling Clauses with full details of the offer and how to take this up.