Were leasehold rabbits sold incorrectly? Claim two-thirds of the buyers were not informed

Half of the people who bought a lease say that they have not been told that they are buying the lease

Tens of thousands of leaseholders are stuck in homes that they regret, according to a new survey, claiming that two-thirds felt that they were being sold incorrectly.

Estate Agent NAEA Propertymark surveyed more than 1,000 people in new leasehold properties to explore the scale of the scandal, exposing thousands with escalating land prices, extortionate prices and a struggle to sell their homes.

The vast majority of respondents, 94 percent, said they regretted buying a long lease, and two-thirds of these homeowners felt that they were being sold incorrectly.

Half of the people who bought a lease say that they have not been told that they are buying the lease

Half of the people who bought a lease say that they have not been told that they are buying the lease

The controversy about new houses sold as leaseholds rather than land tenure has led to a non-binding ban, but there is no clear evidence that leasehold shops have been sold incorrectly.

However, the study reveals the power of feeling that owners were.

The survey showed that 65% of buyers use the home delivery agent to complete the purchase.

About 15 percent of them say that they were not told that they did not buy the freehold by a professional – they had to find it themselves in the contract.

Moreover, almost half did not know that they only bought the lease until it was too late and 57 percent did not understand what & # 39; renter & # 39; meant, until they had already bought the property.

Almost half were unaware of escalating land rent until it was too late, and as a result, a third is now struggling to attract a buyer because of the onerous conditions in the lease.

A spokesperson for the Home Builders Federation said: "The vast majority of new homes are sold on the basis of the freehold principle, but sometimes it may be necessary to sell new houses with lease contracts. This also includes where the developer himself is not the owner.

Rent agreements for houses, such as apartments, usually include proportional land rent that does not affect the mortgage or marketability of a property and as such, leasehold is an established and safe title to ownership of a property.

& # 39; In all transactions, builders strive to provide potential buyers, their lawyers and their mortgage lenders with all relevant information. Buyers are always advised to seek their own legal advice during the purchase of a property. & # 39;

Leasehold scandal

How difficult is it to sell a long lease home?

Of those who are currently trying to sell their homes, NAEA Propertymark's research found that a third person has difficulty attracting a buyer because they are not the owner, and has had a quarter of interest from house hunters, but when they found out that the building was sold as a long lease, they were deterred.

As a result, one in five actively tried to buy the property to make their property more attractive to potential buyers, while 41 percent think about doing it.

The vast majority, 93 percent, says that they will not buy any other leaseholds because of their experiences.

The ground rent scandal came to light last year after it appeared that developers had sold long-term leaseholds with high fees and spirally attached ground rent.

Some of these developers have clauses that have doubled ground rent every 10 years, effectively locking home owners into houses that they could not sell.

After the purchases were completed, property developers have in many cases sold property rights to external parties without informing the homeowners. Approximately 1.4 million houses in Great Britain are leaseholds.

Leasehold campaigner Louie Burns, of Leasehold Solutions, said: "For too long, freelancers have simply denied the many problems that come to light in the leasehold system, but the report from the NAEA is a misunderstanding of the role of developers and free holders in causing and perpetuating the tenant scandal.

Consumers often have little choice but to buy leasehold properties, which at first purchase seem cheaper than inalienable properties, but which quickly become an ongoing financial burden for the consumer and a dairy cow for developers and free holders who can exploit their tenants. .

This is really a scandal and the government must take urgent, forceful action to ensure that tenants are protected against such offensive practices. & # 39;

94 percent of people who regret buying a leasehold, and two-thirds think they were sold incorrectly

94 percent of people who regret buying a leasehold, and two-thirds think they were sold incorrectly

94 percent of people who regret buying a leasehold, and two-thirds think they were sold incorrectly

What does the future offer for tenants?

The government has now proposed a total ban on new-build tenement houses and recently the law commission has proposed a series of new rules that may give tenants the right to buy unlimited longer lease extensions without a canon.

The law committee now recommends the government to replace the current right of tenants with a one-off 50-year lease renewal with a high lease sum, with the right to purchase unlimited longer lease extensions without a canon.

It is set to discuss the period of the extension, which could be an estimated 125 years or 250 years.

The Commission will publish an extensive consultation on long-term leaseholds and flats this autumn and will publish its final report next year.

This is money asked homeowner Alliance founder and chief executive Paula Higgins for her advice for leasehold property owners.

What are the costs associated with leasehold?

Fees and costs associated with a property in long-term lease can be many and varied and may not be immediately clear to anyone who thinks about the purchase or sale of a property in long-term lease.

To gain insight into the three types of levies that are usually associated with leasehold property: land rent, service costs and administrative costs, the Conveyancing Association, the trade organization for the transport industry, has compiled a manual describing what they cover, what they may cost you, and whether they are reasonable or not.

These fees are usually due to the leasing system operator, who is normally a person or company employed by the owner – who owns the free space – to manage and manage the building.

The guide can be downloaded from the CA website and should shed some light on the leasehold process, the costs that can be incurred and what to do if you have to pay too high.