Property expert David Leake of Housesetc introduces us to some new proposed changes within the industry.
All new-build houses will be sold as freehold in order to tackle the continuation of unfair leasehold practices and prevent future homeowners from being trapped in exploitive arrangements.
The proposed changes:
• Ground rents on new leases to be reduced to £0.
• All new houses to be sold on freehold basis unless there are exceptional circumstances.
• Immediate action to ban Help to Buy being used to support the purchase of leasehold houses.
• If buyers are incorrectly sold a leasehold home, consumers will be able to get their freehold outright at no extra cost.
The first debate on leasehold abuses was held in 1884 with hundreds of examples.
A recent report found that:
• 94% of leaseholders regret their purchase.
• 93% would not buy another leasehold.
• 62% feel as though they were missold.
The scale of the problems faced by leaseholders to onerous contract conditions demands wholesale change.