Leasehold Woes

Interesting that the local authority is refusing to take on any maintenance of green spaces. Wasn't aware of this.

This country has got many many things wrong atm.
 
Englander91 said:
I read that article and was quite shocked. As I read it, it seemed to have undertones of a mis-selling scandal. If I remember rightly, the person in the article opted not to buy the leasehold at the first opportunity because of a lack of funds available at the time (just moved house, quite understandable), but then was stung with an offer multiple times higher a few years later when she was in a better position to buy it. I dare say that if they had been properly advised in the first case about how the price could change in the future, they would have looked a bit harder to buy the leasehold upfront.
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At some point people have to take responsibility for their own actions. In the case you mention it is unfortunate, but they should have taken some advice on the initial offer. It's not the company's responsibility to force people to have common sense and get some advice on a situation.

Edit: I assume we're both talking about the Taylor Wimpey example, the Bellway example is more akin to mis-selling (particularly as the person was obliged to go with Bellway's choice of solicitor who didn't appear to properly advise).
 
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Pudney said:
At some point people have to take responsibility for their own actions. In the case you mention it is unfortunate, but they should have taken some advice on the initial offer. It's not the company's responsibility to force people to have common sense and get some advice on a situation.
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Generally I agree with you a lot on that point - but at the same time a company have a responsibility IMO not to knowingly profit on other people's ignorance - thin line there from doing business and scamming people.
 
Rroff said:
Generally I agree with you a lot on that point - but at the same time a company have a responsibility IMO not to knowingly profit on other people's ignorance - thin line there from doing business and scamming people.
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I agree about the thin line, but in the Taylor Wimpey case I do think it's the individual's fault. Taylor Wimpey even approached the leaseholder with the offer rather than vice versa.
 
I put an offer on a new build believing it was freehold, only when it came to paying a reserve deposit was it mentioned about the leasehold. Said I'd take it as freehold or no deal, they declined, walked away.

The sheer level of greed in the new build housing market and the shoddy properties they are flogging is astounding. All propped up by ridiculous Help to buy loans and cheap mortgages. Something will burst the bubble.
 
Don't be too quick to blame Local Authorities. Some would like to but aren't given the option by the developers.

In any case, leasehold on houses is a scam.

I live in a leasehold flat, but I also own a share of the freehold...
 
This is disgusting. Just greedy people trying to make a fast buck.

I own a bellway/TW home, bought new in 2009 and it's freehold. They've obviously changed their business model since we bought it.

That said, she should have checked/asked questions before committing over £200k.
 
Leasehold on new builds is a scam and should be stopped the length of tenancy is frighteningly short and the developers selling them off is plain wrong the owners should at the bare minimum have the same rights as a leasehold flat. The leasehold market in London is bad enough without expanding it to the rest of the country!
 
Unless the government step in unfortunately it's just something that is going to get worse. I can see all new houses being leasehold very soon.
 
a1ex2001 said:
the owners should at the bare minimum have the same rights as a leasehold flat.
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They do? Leasehold flats can have their freehold sold off just as easily as houses, if anything its worse because the service charge for flats is usually in the thousands rather than tens/hundreds and can go up far more onerously.
 
I'm just about to purchase the freehold on a flat I own. The current lease has 90 years remaining and it's going to cost me somewhere in ther region of £11,500 once everything is taken into account. The actual cost of my freehold is only around £6,500 but in order to purchase the freehold we have to buy the whole block and therefore have to buy non participants freeholds too, plus of course £1,500 in legal fees.
 
A friend linked this on Facebook the other day so I don't know if they're in the same predicament.

I can't say I can share any sympathy with them? They should have been aware of the implications in buying a leasehold either through their own research or asked the question to their solicitor. Going on the word of the sales person is just a laughable excuse. I won't disagree that it's shady of the builder, though.

That being said, the new build we bought last year is freehold (wouldn't have entertained the idea of buying a leasehold) but we do get charged an 'estate fee' or however they word it. I can't remember the figure but I believe it works out at something like £20 a month. For this, they come round every couple of weeks and take care of everyones front garden - grass is cut, weeds are pulled, plants are tended to. Just makes the estate look nice.
 
bobbarley said:
No, they don't provide the option to you.
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No this is wrong they do absolutely offer this.

Eg "It's likely thousands of homeowners could be in a similar position to Katie. Lindsay, who lives on the same estate, bought a house from developers Taylor Wimpey.
The company did ask Lindsay if she wanted to buy her freehold - for £2,600. She declined because she was on maternity leave and felt financially it was not possible."

Also, its looking like the bigger developers are moving away from this now
"Taylor Wimpey said as it no longer owned the freehold to Lindsay's house, it did not set the price of the freehold or benefit from the ground rent.
It added that, since the start of this year, houses on its new developments would be sold as freehold-only, except in a small number of cases where it did not own the freehold to the land."
 
Skillmister said:
Not at the time of purchase.
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Yes sorry thats what I had meant to convey, they will offer, but IIRC you have to own the property to be able to us ethe law so you would need to commence the day you completed.

I am pretty sure my friend had to wait until he completed and they quoted a price that was valid for 6 months. Although it took about 8 months to complete from the time he paid the deposit as it ran behind.

Will try to remember to ask him if they stuck to the quoted price when i see him next as he was going to buy it as soon as he completed.
 
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