Fairyland Posted February 3, 2017 Share Posted February 3, 2017 BBC: The new property trap affecting thousands Quote When putting pen to paper to buy a new home, most people expect to know how much they will need to pay to own it outright. But thousands of families in England and Wales are discovering the new-build houses they bought are not all they seemed. Katie Kendrick bought her new-build home from Bellway in Ellesmere Port, Cheshire, three years ago for £214,000. "It was supposed to be our forever home," she tells the BBC's Victoria Derbyshire programme, sitting in the living room of her four-bedroom house. "But it's the biggest mistake I've ever made." Katie knew the house was leasehold - meaning she owned the property for the 150-year length of her lease agreement - but claims she was told by the sales representative that because of the long lease it was "as good as freehold"; a property owned outright. She thought nothing of it, and says she was told she would be able to buy her freehold after two years, believing it would cost between £2,000 and £4,000. But a year and a half later, she received a letter from Bellway saying her freehold had been sold to an investment company, which was now quoting £13,300 for her to buy it. "At the moment I feel completely blind and in a corner and don't know which way to turn. There's legal action but that is very costly," she says. All that glitters is not gold. OTOH, what a productive way for Wealth Creation. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted February 3, 2017 Share Posted February 3, 2017 Already posted Quote Link to comment Share on other sites More sharing options...
Agentimmo Posted February 3, 2017 Share Posted February 3, 2017 Quote When putting pen to paper to buy a new home, most people expect to know how much they will need to pay to own it outright Well that's just BS or poor journalism or both. Most people buy with a variable IR so haven't much clue as to what they'll be required to pay over the 25-30yr life of their loan. They look at the monthly repayment cost today, then figure out if they can pay it plus maybe 10% more. Their repayment margin is thin. We read this all the time in the press and on LLL on C4. It's no big secret. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 3, 2017 Share Posted February 3, 2017 Where's Venger when you need a good laugh. Her house isnt uinsellable btw. It's sellable for about 50% less than she paid for it. Welcome to the #HelpToBanks schemes Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted February 3, 2017 Share Posted February 3, 2017 12 hours ago, TheCountOfNowhere said: Where's Venger when you need a good laugh. Her house isnt uinsellable btw. It's sellable for about 50% less than she paid for it. Welcome to the #HelpToBanks schemes Help To Bankruptcy schemes Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 3, 2017 Share Posted February 3, 2017 That's hilarious. Utter morons. 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. Two years later she asked about buying it but found it was now £32,000. "I rang them and said, 'I'd like to buy it now.' And they said, 'It's not for sale - there's a private investor who owns it. They've got a long-term interest in your property,'" Lindsay explains. "I turned around and said, 'I've got a long-term interest in my property. It's my family home, it's my son's inheritance, and it's not yours to just line your pockets with.' Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 3, 2017 Share Posted February 3, 2017 12 minutes ago, Saving For a Space Ship said: Help To Bankruptcy schemes Katie says because she bought the house through the government's Help To Buy scheme, she felt she could trust the process. Hahahahahahaha I'm literally wetting myself F#cking dumb morons Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 3, 2017 Share Posted February 3, 2017 https://m.facebook.com/story.php?story_fbid=10155097970093132&id=672490516162314 Quote Link to comment Share on other sites More sharing options...
Darby Ram Posted February 3, 2017 Share Posted February 3, 2017 Quote "It's too late really at the point when they've viewed it, because they've already fallen in love with it." Britain is a terminally-stupid country. Quote Link to comment Share on other sites More sharing options...
billybong Posted February 4, 2017 Share Posted February 4, 2017 (edited) There were similar complaints about leasehold (mainly flats) in the 1980s. Maybe a slightly different complaint and more to do with say 100 year leases running out and the hassle of renewing the soon to end lease or buying the freehold. Plus mortgaging difficulties. To get over that disincentive to buy they introduced 999 year leases on many new developments - but it seems lease durations might have crept right back down again. It's truly amazing how they never seem to really get to grips with these problems in the UK. They keep cropping up again and again and again - likely it's just too profitable. Edited February 4, 2017 by billybong Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 4, 2017 Share Posted February 4, 2017 3 minutes ago, billybong said: There were similar complaints about leasehold (mainly flats) in the 1980s. Maybe a slightly different complaint and more to do with say 100 year leases running out and the hassle of renewing the soon to end lease or buying the freehold. Plus mortgaging difficulties. To get over that disincentive to buy they introduced 999 year leases on many new developments - but it seems lease durations might have crept right back down again. It's truly amazing how they never seem to really get to grips with these problems in the UK - likely it's just too profitable. The connection with the Help To Buy scheme is telling. David Cameron, PM, was the chief salesman, on behalf of his Oxbridge mates running the big house builders. You couldn't make it up. Quote Link to comment Share on other sites More sharing options...
electrogear Posted February 4, 2017 Share Posted February 4, 2017 10 minutes ago, Darby Ram said: Britain is a terminally-stupid country. You're not kidding. It shocks me when I hear people talking about not being able to walk away from a house even though it's ridiculously over priced because "they've fallen in love with it". Are people seriously that stupid that all reason goes out of the window? If you treat a property like your first high school girlfriend upi've still got some serious growing up to do! Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 4, 2017 Share Posted February 4, 2017 15 minutes ago, electrogear said: You're not kidding. It shocks me when I hear people talking about not being able to walk away from a house even though it's ridiculously over priced because "they've fallen in love with it". Are people seriously that stupid that all reason goes out of the window? If you treat a property like your first high school girlfriend upi've still got some serious growing up to do! "It was supposed to be our forever home," she tells the BBC's Victoria Derbyshire programme, Quote Link to comment Share on other sites More sharing options...
monkeyman1974 Posted February 4, 2017 Share Posted February 4, 2017 solicitors should be forced to calculate the rent increases over the life of the tenancy; if they can't understand the clause - its saying something these 10 year doubling provisions equate to c7% annual increases I'd say buyer beware, but its always the bloody tax-payer who picks up the fall-out Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 4, 2017 Share Posted February 4, 2017 8 hours ago, Si1 said: https://m.facebook.com/story.php?story_fbid=10155097970093132&id=672490516162314 The lady's Facebook history is telling. Since buying their house, apparently money having been too tight to mention up until this point when she's finally decided to buy her leasehold, in between times she's apparently been on family holidays to Dubai and what looks like Disney. Whilst also appealing for the govt to "save our NHS" (her employer, as a nurse) and generally living it up. Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 4, 2017 Share Posted February 4, 2017 It's getting commented on in Facebook https://m.facebook.com/story.php?story_fbid=1431032513608414&id=922716137773390 Quote Link to comment Share on other sites More sharing options...
Venger Posted February 4, 2017 Share Posted February 4, 2017 26 minutes ago, Si1 said: It's getting commented on in Facebook https://m.facebook.com/story.php?story_fbid=1431032513608414&id=922716137773390 Some good comments. 'Most important purchase - buy house like buying a big mac'. There was a story on HPC a while ago about owners unhappy their ground-rent was doubling... somewhere around Liverpool way. Leasehold years run down? It's an unhappy situation, but what can you do for those who bought into it? Decided long ago I would only buy freehold, if I ever had opportunity to buy at price I think is of value. Can't stop other people in the freemarket, buying freehold / leasehold and outbidding others along the way. When I look at the price for freedom, millions have been willing to pay, down the years.... we're free and tbh, those paying mad prices for houses, or not doing enough research, are on their own. Not 'control' - absolute freedom, and I push back against those indulgently claiming innocence for those paying mad prices for houses, outbidding all others, as being 'victims'. Quote Han Solo: Kid, I've flown from one side of this galaxy to the other, and I've seen a lot of strange stuff, but I've never seen *anything* to make me believe that there's one all-powerful Force controlling everything. 'Cause no mystical energy field controls *my* destiny. Quote Link to comment Share on other sites More sharing options...
Digsby Posted February 4, 2017 Share Posted February 4, 2017 "Woman who didn't read T+Cs finds out what was in them" Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 4, 2017 Share Posted February 4, 2017 (edited) Oh chubby face Dave Cameron. Help to buy my a.rse Edited February 4, 2017 by Si1 Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 5, 2017 Share Posted February 5, 2017 18 hours ago, Digsby said: "Woman who didn't read T+Cs finds out what was in them" Over recent weeks I've had arguments with people on social media, almost Venger-like, about personal responsibility and mortgages. I've received some pretty rum abuse over it, when I suggest that people shouldn't be bailed out by the government for their own lack of due diligence. And to an individual, the abusers are 'living the dream' on their social media profiles - mortgage, diy, glamour, expensive holidays. The anger and nastiness at the inference that they shouldn't be bailed out is really shocking. Quote Link to comment Share on other sites More sharing options...
Blod Posted February 5, 2017 Share Posted February 5, 2017 On 04/02/2017 at 0:23 AM, Si1 said: "It was supposed to be our paying forever home," she tells the BBC's Victoria Derbyshire programme, Its as if people actually want a mill stone. Quote Link to comment Share on other sites More sharing options...
papag Posted February 5, 2017 Share Posted February 5, 2017 How long before jingle keys make a comeback Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 5, 2017 Share Posted February 5, 2017 1 hour ago, papag said: How long before jingle keys make a comeback Since we never had jingle mail here anyway then that's unlikely Quote Link to comment Share on other sites More sharing options...
papag Posted February 5, 2017 Share Posted February 5, 2017 (edited) Not at the scale of the US but it has happened and still does in the UK where people walk away and default , when the UK Gov stops supporting the Banks on the scale it does and IRs increase it will happen more here just like it happens in other countries around the world. Edited February 5, 2017 by papag Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 5, 2017 Share Posted February 5, 2017 3 hours ago, papag said: Not at the scale of the US but it has happened and still does in the UK where people walk away and default , when the UK Gov stops supporting the Banks on the scale it does and IRs increase it will happen more here just like it happens in other countries around the world. No it doesn't. Unless you can link to evidence proving otherwise? People do walk away, but any shortfall in their mortgage follows them. Quote Link to comment Share on other sites More sharing options...
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