First of our new information videos, a summary of our in depth report into the rotten state of the UK residential leasehold property market.
You can read, download or share the full leasehold report at http://hoa.org.uk/2017/04/homes-held-…
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Here’s the full transcript.
People’s homes are held hostage by a growing industry of professional freeholders and management agents who make money from ordinary leaseholders.
Leaseholders are subject to service and ‘so-called’ administration charges set by and increased on a whim by freeholders and their management companies, and we cannot forget the scandal of doubling ground rents for newly built homes across the country that is making these houses worthless.
But it’s not just charges that are the problem. Our report shows that homeowners on a short lease will need to spend over 4 billion pounds to keep their homes in the coming years.
This isn’t a problem faced by the few. Numbers of leasehold homes are growing. In 2015, leasehold properties made up a whopping 43% of all new homes – that’s almost double the rate of 1996. In London the figures are even higher where leasehold makes up 89% of new housing stock.
In our report ” Homes Held Hostage” we expose that leasehold is as unfair as it is complicated & costly. And people don’t realise until it’s too late. 42% of leaseholders don’t know the length of time remaining on their lease. Of those that do, almost a quarter, that’s over 400,000 homes, are under 80 years and those households are facing a complicated and costly lease extension process.
What’s more, young homeowners and first time buyers are the ones who are disproportionately that do, almost a quarter, that’s over 400,000 homes, are under 80 years and those households affected by the leasehold system as they struggle to buy a flat in today’s housing market.
And let’s not forget those downsizing and looking to buy a retirement flat with its own set of extra charges, such as exit fees. affected by the leasehold system as they struggle to buy a flat in today’s housing market. We want to see the Government scaling back on leasehold tenure and promoting freehold or commonhold instead.
Let’s get them to report annually on how they are doing.
Let’s have a review of the leasehold system to stamp out abuses and to simplify over complicated and costly processes like extending your lease and the right to manage.
Let’s outlaw the creation of leasehold houses – there’s no justification for this.
Ban ground rent increases above inflation as this is nothing but shameless profiteering by freeholders.
Let’s all have lease extensions to be 250 years minimum.
Let’s have standard leasehold contracts which balance the interests of leaseholders and the freeholders.
If you’re home is held hostage by a freeholder, or you need practical advice on how to navigate the system, please visit hoa.org.uk or email us at email@example.com
As per reported in:
The scandal of newbuild houses sold as leasehold
Leasehold scandal Telegraph
New-build leaseholders caught in property trap ITV
The new-builds catching house buyers in a leasehold property trap The Guardian
leasehold property scandal