How home ownership could change as leasehold law faces shake up

[dx100uk]

Millions of homeowners could gain new rights over leasehold properties, as the UK government vowed to press on with reform after experts said the leasehold regime was “not working.”

 

A series of reports for the government by the Law Commission this week set out a package of potential reforms for England and Wales, which would give leaseholders more control over their homes.

 

At least 4.3 million homes are thought to be leaseholds in England.

Leaseholders only have the right to occupy a building for a given period, and are effectively long-term tenants of freeholders who own properties outright.

 

They experience a “wide range of problems” as their homes are not fully their own, according to the commission.

 

Proposals include making it easier and cheaper for leaseholders to extend leases, buy freeholds, and take control of the management of buildings.

 

https://uk.yahoo.com/finance/news/coronavirus-leasehold-flat-freehold-law-extension-230124992.html

[London1971]

A good friend of mine can technically get evicted from his own flat, if he fails to pay the £250 or so ground rent per year.  
 

This is so ridiculous it’s beyond words

[brassnecked]

Its only come to be such a big issue as  recently Developer's have often  misled buyers into signing quickly, keeping the freehold the buyer thought they were getting and flogging it off to another company that then is as rapacious as any PPC. issues of Misrepresentation if not outright fraud has been going on. Basically Leasehold is akin to Renting with a huge deposit up front, and yes occupier could be evicted for failing to pay ground rent, or putting a garden shed up, and not asking freeholder's permission and paying the fat fee they want for that permission. The Ground rent can double and keep increasing  and be more than the mortgage within a few years.

[London1971]

We almost went down that rabbit hole with a new build. And not to forget the ridiculous maintenance fee timebomb.

 

Thankfully we pulled out of the sale and ended up buying an 80’s built freehold house. A much better  (and cheaper) buy.