Plans To Ban Leaseholds On New-Build Houses In England

[mikey4444]

http://www.bbc.co.uk/news/business-40711013

Should have been done a long time ago, IMHO.

[-Talbot-]

And so they should be

[ToraToraTora]

yes, welcome but not sure why it's necessary, why would anyone buy one anyway?

[dannyk13]

//why would anyone buy one anyway?//
Because the majority of buyers never check if a property is freehold/leasehold.

[mikey4444]

TTT....look at the graph in the link. In some developments, leaseholds are the only option..

My house was leasehold when it was built in 1976, not unusual for areas like South Wales. The ground rent was £25 pa, for 99 years. I bought the freehold many years ago....I can't remember what the cost was.

But it wasn't just the saving in money.....it was the rapidly declining length of the lease.

[ToraToraTora]

flats aside, if the house is on the ground there is no reason for it to be a leasehold beyond some sort of financial skullduggery. Yes I know of complex ancient "under leases" etc but really with new builds there is no excuse.

[mikey4444]

Leaseholds have always been the shyster's charter....good riddance.

[Peter Pedant]

leasehold - v common for flats - the otherwise is flying freehold

only in the last ten years has variable ground rent been a problem
( I have to say with quaking hands I re read the leases on my property and checked it was fixed - vsriable ground rents would have been a deal breaker )
a few years ago a tv prog on Peacehaven (sussex) was aired
leaseholds were being reassessed after 70 y and ground rents were coming in at £45000

the householders commented - we just cant sell these properties

Mikey - you should have paid ten times your ground rent (£250) - which is now on discounted terms - £2500
I was told it was never worth it ( for fixed grounds rents)
( doesnt count legal fees)

I pay 2 x £25 and frankly I wonder why he bothers
Only payable in arrears
and resist any letter that says can you pay five years in advance - they can ask but they cant force

when I bought - I was indemnified 6 y ground rent
as it hadnt been collected
and when the freeholder woke up ( was bought up in bankruptcy) he demanded 10 y back rent which was successfully resisted
oh oops yes the freeholder guiltily said, my mistake

[cassa333]

There is no need for freehold houses and it is about time these were stopped.

The ground rent may only be a few £ to start with but they never go down in cost only up.

It is the same with maintenance fees. You buy a house on a lovely estate with the grounds and roads maintained by the management company and everyone feels smug at living in such a lovely area.

Then one day a bill for several thousand comes in for the water mains to be upgraded and the road to be resurface. Oh and little Johnnys mum and dad are suing because he tripped over on a flag stone so someone has to pay it.

[Old_Geezer]

Where I was young it seemed the majority had a lease. It was the norm where I was. Should never have been allowed at all. Either one has bought one's home, or one hasn't. Absolute con to retain a lease to steal back someone's home, or demand a fortune for a new lease, at the end of the existing lease.

[mikey4444]

Cassa....I expect you meant leasehold !

[Peter Pedant]

// he ground rent may only be a few £ to start with but they never go down in cost only up. //

it is the new variable ground rents that people are being scrowed by

Mikey and I had £25 fixed p a and as a result of inflation
he and I are paying around £2.50 in 1974 pounds
Hence it wasnt worth him buying the freehold

[cassa333]

Yes Mikey I did mean leasehold lol