Leasehold Scandal

We recently bought a new build home using the Help to Buy government scheme where they loan us 20% of the house price and we only need to produce a 5% deposit. We were sceptical about the process as we had been told at the initial appointment that if we reserved a property we would get flooring, garden turf and carpets included in the price which was changed at the second appointment. The house price was initially £264,950 with double parking. We returned the following week to reserve the plot (off plan) that we wanted. We were told that we would get a £500 contribution to legal fees if we used their nominated solicitors. During the reservation process (we had a different sales person to first visit) we queried why the 2 parking spaces and flooring and turf were not detailed on the form. The salesman said 'no we don't include that and it's only 1 parking space because the college own the land, its out of our control'. I told him the first sales lady had told us we would get the extras free of charge and that the parking was advertised on their website. He said he would see what he could do. We said we would hold on the reservation until he got back to us. We also notice the reservation form stated the house was Leasehold. We did not know this and asked why it said that. He explained it was a leasehold property because the college owned the land and not the developer so it was only available as a leasehold. We were disappointed as it does not mention the leasehold basis in the brochure or on the website. He said it's ok because the lease is 499 years long and we won't need to worry during our lifetime and the land is safe because the college own it.

He got back to us a few days later and said the property we wanted was in high demand because it was end of terrace and would cost an extra £3k and the best they could do was £1,000 allowance towards extras and £500 unconditional contribution towards legal fees whichever solicitor we used. I argued back and forth as we wanted what we were originally promised but in the end we had to settle for the 1 parking space (we had run out of time to start the process elsewhere and we had to move within a tight timeframe and this was the last affordable house that was new build), £500 legal contribution and £1,000 flooring contribution although I put it in writing that we remained unhappy and still wanted to pursue the other promised items. I wrote to senior management and made a formal complaint which was never investigated and to date we have not had a full explanation as to why and how these false promise and false advertising came about.

FAST FORWARD to completion September 2016. We move in. We have paid for our flooring £4,400. We did not get the £500 legal fee contribution. We did not get double parking. We did not get turf. There are at least 40 defects in the house, shoddy workmanship and the flooring is well below standard. I report the defects and after hours and hours of visits and days wasted spent at home most of the get sorted apart from the floor. Most snags were remedied in a poor and slapdash way but the floor is unacceptable. 3 times the flooring company have been to our home and just made it worse each time. The developer refuses to compensate our time and inconvenience or the cost of the flooring.

Fast forward to January 2017. We remain unhappy with the sales process, the Customer Care and after sales service. Almost everything really. Except we have a house we own and feel secure in and although it wasn't freehold we had nothing to worry about because the lease was almost 500 years and therefore would not lose value and we would not lose the land during our lifetime. SO WE THOUGHT. We found out last weekend that the developer lied to us. THEY own the land. The Freehold was and should nave been made available to us. They committed crucial information we needed to make an informed decision, withheld information we needed to know and influenced / manipulated our decision by giving false information both verbally and via their marketing materials.

We felt sick. We could not believe this had happened to us. :mad: We started to talk to other home ones on our plot and realised quickly they had been told exactly the same thing as us; the Freehold was owned by the college and not the developer. We were all sold our homes using deception. As if it couln't get worse, we cannot apparently buy our freehold until we have owned our properties for at least 2 years. The developer is going to sell the land in less than a year's time to another company. We will not get first refusal because our homes are houses and not flats. Meaning our Freeholds could increase in price significantly and become unaffordable to us and out us in negative equity/financial ruin. Or we may not be able to sell our houses. There are so many possibilities and most seem to be negative. We have all been duped.

I was interviewed on the Victoria Derbyshire show on 02/02/2017. MP Sir Peter Bottomley also joined the panel and he was extremely supportive. This is getting media coverage and is being debated in Parliament so there is a tiny ray of hope. I am hoping that the fact we were all lied to will mean we can get our freeholds without an expensive legal battle. If anyone has any experience of this or can suggest any avenues we can follow or agencies that can support us I would really appreciate it.

If anyone has a home on Kaleidoscope, Dunstable and wants to challenge Linden Homes and Galliford Try, please join our Facebook page Linden Homes | Leasehold Scandal | Complaints | Galliford Try
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Comments

  • Didnt want to read and run.

    I personally think Leasehold / Freehold will be the next biggest financial scandel along the lines of Endownments for those old enought to remember those. People not really understanding what they are taking on and paid prefessionals glossing over Leasehold details or constraints. Where else could you essentially lose your home if you can't find thousands of pounds on demand if they whack in a massive Sec 20.

    When Leasehold / Freehold first came about it was simple, you bought a leasehold flat, paid your service charges and Freeholder maintained the property.

    Nowadays a Freehold is often exchanged / sold regularly by those looking to make as much money out of them through admin charges and services charges and a whole host of other eroneous costs borne by Leaseholders. They are money making opportunties and Leases are not always definitive. Things like
    reasonable admin charges incurred by the Freeholder ( well whose to say what is reasonble)

    In your situation you have mentioned the Land being sold next year but not having first option to buy, the option will presumable go to the hightest bidder ( Freeholds are often sold at auction ). You will also have the worry of any new Freeholder wracking up service charges, admin costs, surveyor costs, parking a caravan, subletting your home if you wanted in the future, everything they can think of. Whats the betting the new owner starts charging for repairs / maintenace to the communal areas outside, roads / access etc who maintains those, do you have a right of access or are you suddenly to be billed for the right to use the land your parking space is on.

    I am surprised your Solicitor / conveyancer did not note the land owner by way of the Land Registry . You would have had an opportunity to see the Lease aswell before exchange ?

    These Leasehold stings seem to be becomming more and more prevalent unforutnately.
  • sorry to hear about your issue. My only advice is to keep doing what you are doing and shout as loud as you can about the situation.

    As per the above post, its a shame your solicitor didn't spot this prominent detail
  • Flying Donkeys- Do no harm to others and you will benefit in more ways than one.
  • Get ready to sue your lawyer for negligence and write to your MP and Leasehold Knowledge
    Flying Donkeys- Do no harm to others and you will benefit in more ways than one.
  • HappyRose_2
    HappyRose_2 Posts: 21 Forumite
    edited 15 March 2017 at 12:06PM
    Anyone get the idea this leasehold racquet is deliberate. Its surely against our Human Rights to have to deal with this systemic abuse of leaseholders?

    1. Put extortionate terms in the lease, which mean you can grab the property over a dispute in charges.

    2. Any dispute at Tribunal ruled over by secret court. There are no recordings, no redress without paying a fortune. Not one person representing themself has won on appeal. Agents allowed to lie. Lawyers win. They charge you for costs and you lose your property. All supported by Tribunal panel.

    3. Leaseholders flummoxed with paperwork at 11th hour etc. or no answers/receipts.

    4. Costs of applying and torturous process all designed to disadvantage the Leaseholders.

    5. Many MP’s are lawyers. They know this racquet is going on.

    6. Leaseholders left fighting for time on media controlled by 2 billionaires in UK and a couple of MP’s fighting the battle.

    7. In the meantime Leaseholders left having low quality of life and nervous breakdowns. It’s a money grab by the powerful and I’m sick of it.
    8. Add to this that many of the freeholders hide assets in offshore trusts.
    9. If a politician has offshore trust he does not have to declare, ownership is anonymous. Britain behind most of this industry. England and Wales only place to have freeholds. Scotland abolished it. It’s a relic of feudal law.
    10. Furthermore process to hold lawyers responsible for negligence and compensation is deliberately torturous.
    11. DCLG appoints Chairman of LEASE. LEASE is not fit for purpose.

    We are not all in this together. The lawyers, freeholders, regulators, government, MP's and Tribunals are all in it together to line their pockets at Leaseholder's expense.

    We need to stop this gravy train. No immigrants or EU responsible in fact the EU might be one way out. We have a right to justice and compensation.
  • Chanes
    Chanes Posts: 882 Forumite
    First Anniversary First Post Combo Breaker
    It seems to be the latest housing scandal and I think when some people are told the house is a leasehold have the idea that it is like a peppercorn ground rent with a set price and not allowed to be changed and lasting hundreds and hundreds of years. These new leasehold houses are a different thing completely, like a mutant nightmare of the original leaseholds.When it comes to selling another solicitor will surely pick up on a dreadful lease and how will that impact on the sale of the property?

    I hope this gets sorted out, how houses are being sold with leases is madness and I am sure I read the practice has been stopped in Scotland and other places. It's medieval!
  • mattb87
    mattb87 Posts: 21 Forumite
    Is this an example of why it may be a bad idea to use a solicitor recommended by a developer?
  • mattb87 wrote: »
    Is this an example of why it may be a bad idea to use a solicitor recommended by a developer?

    Personally I would never do so, I would choose my own.
    "There's no such thing as Macra. Macra do not exist."
    "I could play all day in my Green Cathedral".
    "The Centuries that divide me shall be undone."
    "A dream? Really, Doctor. You'll be consulting the entrails of a sheep next. "
  • I have set up the national leasehold campaign Facebook group. Please feel free to join.

    We are grouping together to fight this and take legal action.
  • National leasehold campaign Facebook group are fighting this together.

    I have set this up to work together.

    Please join.
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