Thursday, Jul 27, 2017

Caveat emptor

Grauniad: Leasehold houses and the ground rent scandal

Apparently much of the newbuild stock of houses has leasehold arrangments, with clauses such that the ground rent doubles every 10 years! So a guaranteed return to a spiv or offshore entity (ultimately the same) of 7% p.a. I won't bore you with the anecdote about the chessboard and the exponential function, but by 2060 many houses would have groundrent charges of over £10,000 p.a. And so by 2090 £80,000 p.a. In related articles, a figure is given of 42% of new houses with leasehold, and it is pointed out that England is one of the few places in the world where leasehold remains, it being formerly spread through the Empire. Christ...

Posted by nickb @ 06:23 PM (3166 views) Add Comment

3 Comments

1. taffee said...

Financial engineering... Packaged up and sold to 'investors' who fleece owners where they can

I mean where would builders be without all the props?

Tiny rooms dubious workmanship and high rise Flat
Roof flats

What could go wrong?

Friday, July 28, 2017 06:03AM Report Comment
 

2. mombers said...

Time to re-evaluate the private sector's efforts in housing are fit for purpose?

Friday, July 28, 2017 09:28AM Report Comment
 

3. nickb said...

should provide pause for thought for anyone who thinks the answer to all this is simply build more houses... ;-)

Saturday, July 29, 2017 01:52PM Report Comment
 

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