Saturday, Jun 05, 2010
Fair prices or rip-off?
BBC: Calls for change to leasehold law
"There are calls for the law on leasehold properties to be simplified to prevent home owners paying over the odds when they have to renew their lease".
Posted by alan @ 05:01 PM (1150 views) Add Comment
5 Comments
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1. taffee said...
the easy solution is to abolish 'length of lease'..however,the government will probably mess it up as usual
2. jack c said...
There is (IMO) a big money making exercise going on in the background with this - there is one company in particular that has set out to buy up leases on a large scale and having done so then makes it very difficult to engage in any meaningful communication - when you do eventually track them down its on an expensive 0870 number and any written information request comes with a minimum basic charge of £50 per letter - they then rather conveniently omit some of the information needed resulting in a further request becoming necessary for which they then demad a further £50 and so the scam continues !
3. Exiges said...
To me, leasing is like long term renting and you don't own it. When it comes up for renewal you have to pay what they're asking, or get out, simple.
4. enuii said...
The Joys of flat ownership and their 99 year leases!
Make sure you get rid of yours well before the term left is less than 80 years.
5. Cozza said...
That the price of a lease extension/freehold has gone through the roof in recent years is the result of a dreadful House of Lords case called Cadogan -v Sportelli, which linked asset values throughout the country to central london values. What an utter disgrace. Until the repeal of this case for leasehold homeowners outside central london, many people will remain trapped.
And another thing, many conveyancing solicitors don't understand the implications of a high ground rent and 'marriage value' (which makes it more expensive for leaseholders to purchase/extend their lease if it falls under 80 years) and don't, therefore, pass this information onto prospective owners. Many of the dog box flats in London have such high ground rents that the cost of an extension/etc are prohibitive. I would predict that many of these flats will simply revert to the freeholder upon expiry of the lease.
Regulating ground rents and repealing Cadogan -v Sportelli would be the way forward. But caveat emptor to leaseholders - order an independent valuation of these assets or prepare to be royally ripped off. Very simple really!