Taylor Wimpey profits suffer 24% hit in leasehold scandal bite

[Mapatasy]

Taylor Wimpey profits suffer 24% hit [NOT ENOUGH] in leasehold scandal bite

"UK developers came under fire from the government as it revealed plans to combat shoddy leasehold practices from builders and remove Help to Buy equity loans support as soon as possible on new builds sold as leasehold... Land Registry figures show that leasehold made up 43% of all new-build registrations in England and Wales in 2015"

http://www.mortgagesolutions.co.uk/news/2017/08/02/taylor-wimpey-profits-suffer-24-hit-leasehold-scandal-bite/

 

...makes me want to be sick.

[Wayward]

An appalling scam...but it shows how poorly advised buyers are...lambs to the slaughter.  This could only happen in a sellers market.

This raises questions about ethics in British business....this is an absolute disgrace but evidently the house builders Board, corporate governance and compliance people thought this was acceptable...what planet are they on.  Does nobody have any morals anymore...

I expect we will hear about more about this scam in future as this all unravels

[Habitationi Bulla]

I really cant understand why any house or flat should be on a leasehold basis, the rest of the world seem to manage fine without such feudalism. 

 

[Habitationi Bulla]

Last week, UK developers came under fire from the government as it revealed plans to combat shoddy leasehold practices from builders and remove Help to Buy equity loans support as soon as possible on new builds sold as leasehold for no reason.

That really is just a case of the government saying look we know we're propping your house prices up now be a good boy and just rip the plebs off a little less blatantly.

[mrpleasant]

PPI gives way to LHI and another ten years of cold calls.

Ethics in business means little more than what you can get away with. Greed, pure and simple, and never edifying.

[Calcutta]

36 minutes ago, Wayward said:

 

This raises questions about ethics in British business....this is an absolute disgrace but evidently the house builders Board, corporate governance and compliance people thought this was acceptable...what planet are they on.  Does nobody have any morals anymore...

Leaseholders should just consider themselves lucky the government has noticed before they were charged 20k each for some cyanide cladding and burned alive.

[Wayward]

1 hour ago, Habitationi Bulla said:

I really cant understand why any house or flat should be on a leasehold basis, the rest of the world seem to manage fine without such feudalism. 

 

there is a reason for flats being leasehold...that is the norm in England and has been for decades.

but houses...no justification for leasehold at at all and its just a scam.

[Habitationi Bulla]

1 hour ago, Wayward said:

there is a reason for flats being leasehold...that is the norm in England and has been for decades.

but houses...no justification for leasehold at at all and its just a scam.

Its the norm because it suits the landowners, flat should be sold with the freehold there really is no need to have to lease them.

I bought a place 20 year ago and went backpacking round the world, i'd have rented it whilst away and had somewhere when i got back but it stipulated i wasn't allowed.

As well as paying best part of a grand a year to have the grass cut outside.

[mrtickle]

3 hours ago, Habitationi Bulla said:

Last week, UK developers came under fire from the government as it revealed plans to

* combat shoddy leasehold practices from builders and

* remove Help to Buy equity loans support as soon as possible

                  on new builds sold as leasehold for no reason.

 

I got interested about the removing HTB part. But it doesn't mean ending HTB on schedule or early, does it?

It's just a threat that "new builds sold as leasehold for no reason" might not get HTB support - but everything else carries on with HTB as before. 

Is that right?

 

[Blod]

8 hours ago, mrpleasant said:

Ethics in business means little more than what you can get away with. Greed, pure and simple, and never edifying.

As long as you can pass the consequences of your actions to someone else then you're quids in. Worked with a few that have had that compass and seen a few of them come unstuck. Like BTLers becoming 'accidental landlords' when the SHTF they try to hide from their actions. One of the first I ever came across tried to justify his retention on the basis that he could try again and would get it right. My then boss pointed out that he'd caused the mess knowingly but that didn't mean he'd be trusted by our clients when resolving the mess he put them in hence he was sack that Friday. Taught me a lot about peoples characters.  

[The Preacherman]

1 hour ago, Blod said:

As long as you can pass the consequences of your actions to someone else then you're quids in. Worked with a few that have had that compass and seen a few of them come unstuck. Like BTLers becoming 'accidental landlords' when the SHTF they try to hide from their actions. One of the first I ever came across tried to justify his retention on the basis that he could try again and would get it right. My then boss pointed out that he'd caused the mess knowingly but that didn't mean he'd be trusted by our clients when resolving the mess he put them in hence he was sack that Friday. Taught me a lot about peoples characters.  

Your boss had an amazing amount of integrity that is sorely missing in most cases. I write as someone who has just walked from a job after my boss told me I was 'not manipulative enough'.

[The Preacherman]

11 hours ago, Wayward said:

An appalling scam...but it shows how poorly advised buyers are...lambs to the slaughter.  This could only happen in a sellers market.

This raises questions about ethics in British business....this is an absolute disgrace but evidently the house builders Board, corporate governance and compliance people thought this was acceptable...what planet are they on.  Does nobody have any morals anymore...

I expect we will hear about more about this scam in future as this all unravels

Taylor Wimpey was also the business who was offering cash incentives to buyers to move in before the house had properly been finished. No doubt the bonuses for senior management where linked to properties being handed over.

[winkie]

11 hours ago, Wayward said:

An appalling scam...but it shows how poorly advised buyers are...lambs to the slaughter.  This could only happen in a sellers market.

This raises questions about ethics in British business....this is an absolute disgrace but evidently the house builders Board, corporate governance and compliance people thought this was acceptable...what planet are they on.  Does nobody have any morals anymore...

I expect we will hear about more about this scam in future as this all unravels

Good post...... then you wonder why people are becoming more cynical, when massive loss of trust in society and with business.....customers there to be taken advantage of being bled dry over time so might not notice and think it is normality...no scruples anymore, allowed to happen because high chance can get away with it......'cause nobody cares..... consequences of self regulation.

[Blod]

2 hours ago, The Preacherman said:

Your boss had an amazing amount of integrity that is sorely missing in most cases. I write as someone who has just walked from a job after my boss told me I was 'not manipulative enough'.

You were right to walk away from that job. How can someone who values manipulating people then argue if one of their team then steals/defrauds? 

[moonriver]

15 minutes ago, Blod said:

You were right to walk away from that job. How can someone who values manipulating people then argue if one of their team then steals/defrauds? 

I agree, the poster was right to walk awasy. 

I find this very concerning as it makes you wonder how widespread this is now? How many employees might feel forced into sacrificing their own morals because they are so scared of losing their jobs? 

[frankief]

12 hours ago, Wayward said:

there is a reason for flats being leasehold...that is the norm in England and has been for decades.

but houses...no justification for leasehold at at all and its just a scam.

Yes, because it would be very difficult to individually own the land your property is built on if there are 5 other flats under you. Also who owns the foundations, the roof, the lift and the corridors/ stair areas? You can allocate parking bays, but who owns the bit of tarmac leading to them & the drains below?

The 'headline' quoted does not go into detail of how many houses are involved.

Edited August 3, 2017 by frankief

[thewig]

3 hours ago, The Preacherman said:

Your boss had an amazing amount of integrity that is sorely missing in most cases. I write as someone who has just walked from a job after my boss told me I was 'not manipulative enough'.

hats off to you sir with morals like that karma will ensure you'll benefit I'm sure. what sector out of interest?

[Option5]

39 minutes ago, moonriver said:

I agree, the poster was right to walk awasy. 

I find this very concerning as it makes you wonder how widespread this is now? How many employees might feel forced into sacrificing their own morals because they are so scared of losing their jobs? 

worse than you can imagine, and in just about every sector, there's a link between upper management and psychopathic behaviour

[Wayward]

12 hours ago, Habitationi Bulla said:

Its the norm because it suits the landowners, flat should be sold with the freehold there really is no need to have to lease them.

I bought a place 20 year ago and went backpacking round the world, i'd have rented it whilst away and had somewhere when i got back but it stipulated i wasn't allowed.

As well as paying best part of a grand a year to have the grass cut outside.

don't think that's right...a flat can't be freehold given you have others above or below you.

[Habeas Domus]

11 minutes ago, Wayward said:

don't think that's right...a flat can't be freehold given you have others above or below you.

In Scotland all flats are sold with a share of the freehold, so it can be done, there just needs to be a will to serve the interests of the people above the landowners.

[Habitationi Bulla]

10 minutes ago, Wayward said:

don't think that's right...a flat can't be freehold given you have others above or below you.

Most of the planet sells with a share of the freehold.

[Driver]

2 hours ago, Habeas Domus said:

In Scotland all flats are sold with a share of the freehold, so it can be done, there just needs to be a will to serve the interests of the people above the landowners.

nevertheless they are still leasehold.

[Driver]

Leasehold is there to provide a mechanism whereby covenants between each leaseholder and the landlord can be enforced against other leaseholders. As previously commented on, it also provides a mechanism whereby common parts are defined and their maintenance provided for. leases have existed for centuries without problems and can continue to exist.

 

The fact some companies have bastardised this into a profit mechanism on houses is disgraceful.

Edited August 3, 2017 by Driver
Hadnt finished post when i pressed wrong key

[Habeas Domus]

1 hour ago, Driver said:

nevertheless they are still leasehold.

No they are freehold

[Habeas Domus]

I should add that just because you have a freehold, does not mean you will be free of problems, when it comes to repairs instead of dealing with one recalcitrant and unhelpful freeholder, you may have to deal with several recalcitrant and unhelpful neighbours and/or absentee landlords.

This is why when buying a freehold flat in Scotland your first question should be "who is the managing agent for communal repairs" if there isn't one, caveat emptor.