Why are some new housing estates leasehold

Horizon81

I've been looking at houses on a couple of estates that were built in the last 10 -15 years and see (from looking at those house price index websites) that they're mostly leasehold.

I've always associated leasehold with flats/apartment blocks and the odd house rather than an entire estate. So... a couple of questions - why are they leasehold, and is there usually an option to purchase the freehold.

I have no desire whatsoever to buy a leasehold house.

Fire_Fox

Possibly the council are not willing to adopt the roads and so there will be service charges associated with managing the estate (grass verges, roadway).

Richard_Webster

Because, I'm sorry to say, the builder thinks the average house buyer won't realise that they will have to pay again in 20 years or so to extend the lease or buy the freehold - that way builder makes some extra money by selling freehold once development is finished to some (dodgy?) property company or the other.

Why buy new houses anyway? They are not generally good value for money. I certainly wouldn't buy if it was leasehold - and if more buyers refused to deal with the builders then they might start acting more reasonably.

Private roads and open areas can be be maintained through an estate rentcharge against a freehold title so a leasehold sale isn't necessary to deal with that point.

Horizon81

Thanks for that Richard. I was expecting a barrage of people to say there was nothing wrong with leasehold but I'm glad you share my sentiments. To me, the leasehold is an added cost and complication that I can do without. Of course, judging by past sales and prices it doesn't seem to deter most people but then again most people aren't very conscientious.

I shall continue my search for a freehold house. If I buy a house I want it to be mine, not merely a lease!

Richard_Webster

I think to be fair I am not saying never to buy leasehold because there are some areas where nearly all the older houses are long leasehold anyway - but I do think the builders have a cheek using leasehold to make more money on newbuilds - and they appear to be quite short - 99 year ones - rather than the 1900 ish 800-1000 year leases that feature in many northern industrial towns (and interestingly also in my area - Southampton/Eastleigh).