Leasehold reform

[MrXxxx]

https://www.msn.com/en-gb/money/homeandproperty/please-don-t-make-our-leasehold-homes-even-harder-to-sell-mr-gove/ar-AA1jaSUg?ocid=mailsignout&pc=U591&cvid=6c81e918f10645d38b61449a8b90e75b&ei=97

I think this typifies the attitude we have in this country i.e. people make a mistake and as a result a) don't want to take personal responsibility for it, b) want others to pay for it, and c) don't want anyone else to benefit from it. In this example the couple a) could have backed-out and not bought the property; nobody was 'holding a gun at their head', b) the cost of buying the lease is only ~2% of the purchase price [whereas it will add more value than that to their property], and c) not accounting for capital appreciation in the property it would be paid back in less than 9 years!

[DurhamBorn]

22 minutes ago, MrXxxx said:

https://www.msn.com/en-gb/money/homeandproperty/please-don-t-make-our-leasehold-homes-even-harder-to-sell-mr-gove/ar-AA1jaSUg?ocid=mailsignout&pc=U591&cvid=6c81e918f10645d38b61449a8b90e75b&ei=97

I think this typifies the attitude we have in this country i.e. people make a mistake and as a result a) don't want to take personal responsibility for it, b) want others to pay for it, and c) don't want anyone else to benefit from it. In this example the couple a) could have backed-out and not bought the property; nobody was 'holding a gun at their head', b) the cost of buying the lease is only ~2% of the purchase price [whereas it will add more value than that to their property], and c) not accounting for capital appreciation in the property it would be paid back in less than 9 years!

My house was leasehold when i bought it,i knew,i waited until couple of days before completion then dropped on them i wanted £8k knocking off it was leasehold,i already checked i could buy Freehold for  £4k two years later.Thats what i did.I made £4k,but i took a small risk they would stop you buying the freehold.Many in my close will be praying it goes through though,lots dow to 60 years lease,marriage value will be shooting up,and looks like might be scrapped.

[sancho panza]

I can't believe anyone would want to block this reform.Good.Spells the end for the leaseholder screws.

If they can afford a £600k hosue I can't see why they're bitching about an £11.5k buyout of the freehold.

you've got to be especially naieve to buy  detached pad leasehold....naieve is maybe me being polite

Edited November 1, 2023 by sancho panza

[MrXxxx]

59 minutes ago, DurhamBorn said:

Many in my close will be praying it goes through though,lots dow to 60 years lease,marriage value will be shooting up,and looks like might be scrapped.

If it doesn't go through those with <60 years remaining will see a dramatic loss in value if they ever try to sell, not only will you have the current drop/move back to market average prices [rather than boom prices], but BS/Banks valuers won't be willing to loan so much on them against a similar property with Freehold.

[Wight Flight]

Quote

The couple, who live in the Morris Homes- built house with their 17-year-old son and daughter, 15, also pay a separate maintenance charge of £80 a month

Sounds to me like it might be some kind of gated community.

There is an advantage of leasehold in these areas as the leaseholder retains some control over who can do what.

Sort of anti-scum insurance.

 

[ccc]

3 minutes ago, Wight Flight said:

Sounds to me like it might be some kind of gated community.

There is an advantage of leasehold in these areas as the leaseholder retains some control over who can do what.

Sort of anti-scum insurance.

 

I think that may also go to the leaseholder. 

The acceptance of lease holding in general in this country is quite unbelievable. 

Someone spends £3 million for a flat in London and they don't even own a share of the ground its built on ? And why ? Because someone 900 years ago invaded somewhere then banged someone's cousin. 

Its like a comedy sketch. Yet because its gone on for so long its somehow viewed as acceptable. Its a full on scam. 

[Pip321]

4 hours ago, ccc said:

I think that may also go to the leaseholder. 

The acceptance of lease holding in general in this country is quite unbelievable. 

Someone spends £3 million for a flat in London and they don't even own a share of the ground its built on ? And why ? Because someone 900 years ago invaded somewhere then banged someone's cousin. 

Its like a comedy sketch. Yet because its gone on for so long its somehow viewed as acceptable. Its a full on scam. 

Possibly one of the most articulate concise accurate and humorous summaries of leasehold I have ever read. 😆

[Sugarlips]

It’s rumored the kings speech next week will:

- Force all new build houses to be freehold only

- Allow all future lease extensions to be for 990 years as opposed to the current 90-125 years.

- Force all ground rent to be on a peppercorn basis only.

 

 

[logan]

- Allow all future lease extensions to be for 990 years as opposed to the current 90-125 years.
 

Why extend them at all? I don’t understand why there needs to be a set number of years.

[sarahbell]

On 02/11/2023 at 05:02, Sugarlips said:

It’s rumored the kings speech next week will:

- Force all new build houses to be freehold only

- Allow all future lease extensions to be for 990 years as opposed to the current 90-125 years.

- Force all ground rent to be on a peppercorn basis only.

 

 

That'd fuck off the ground rents income people.

 

They spent 600k irresponsibly. and 11k is a tiny tiny % of that amount.

 

[UmBongo]

I will have to pay to extend the lease on my flat in the near future. It will take it to 900+ years and a peppercorn rent. However there is talk of replacing leasehold with commonhold. I don`t want to pay the thousands of pounds in extending lease if they go over to commonhold in the future. 

[Democorruptcy]

Backing out of it?

Quote

 

Leasehold ban not included in housing reform law

The UK government's proposed ban on the sale of new leasehold houses has not been included in its bill to reform housing rights.

Ministers had said this week's new bill would ban the sale of new leasehold houses in England and Wales.

Housing Secretary Michael Gove said the law would mean leaseholders can "take back control of their property".

But the government says the ban will be added to the bill at a later stage in its passage through Parliament.

https://www.bbc.co.uk/news/uk-politics-67569517

 

 

[UmBongo]

Ground rent to be capped at £250 for 20 years

Quote

Leaseholders will continue to pay annual ground rent capped at £250 for up to 20 years in an amendment to the Leasehold and Freehold Reform Bill set to be announced today.

Coincidentally I have just received a demand for the annual £60 ground rent charge. On my lease it states that it will increase from £60 a year to £120 a year in 2037.

[Democorruptcy]

1 hour ago, UmBongo said:

Ground rent to be capped at £250 for 20 years

Coincidentally I have just received a demand for the annual £60 ground rent charge. On my lease it states that it will increase from £60 a year to £120 a year in 2037.

Cheaper ground rents like yours will eventually be phased out, once they introduce a "cap".