Does anyone want to join me waiting for new build to be built and complete

lee111s

IKE25 wrote: »

I am about a month away from completion on a new build leasehold house and then I read this bombshell article.

https://www.theguardian.com/money/2016/nov/05/ground-rent-scandal-engulfing-new-home-buyers-leasehold

I've decided to commence the pull out process. Will cost a few grand but still preferable to having a unsaleable home.

Have you exchanged?

Why not just buy the freehold?

IKE25

Not exchanged yet - asked to buy Freehold and they said no.

lee111s

Insane. Walk away.

I always thought they had to offer you the freehold but it seems not. A friend is buying a 3bed detatched from Persimmon and they also refused him the freehold. I've told him not to continue but you just can't tell some people

BrassicWoman

IKE25 wrote: »

I am about a month away from completion on a new build leasehold house and then I read this bombshell article.

https://www.theguardian.com/money/2016/nov/05/ground-rent-scandal-engulfing-new-home-buyers-leasehold

I've decided to commence the pull out process. Will cost a few grand but still preferable to having a unsaleable home.

Does this apply to your house? Has your solicitor been through the lease with you?

IKE25

Yes. I read the articles then asked the solicitor if this applies to me - they confirmed yes. I can't accept the risk of an unsaleable house so I cut my losses and cancelled.

Posted the link to the article just in case others aren't aware of the issue.

kunkj

Thanks for posting that article IKE25, very interesting. I wonder if eventually there will be legislation to stop this practice? It seems almost criminal, and the sums of money are so huge. How can the government claim to have a focus on increasing home ownership, if increasing numbers of those home owners are ending up with unaffordable/unsaleable homes.

mleach101

kunkj wrote: »

Thanks for posting that article IKE25, very interesting. I wonder if eventually there will be legislation to stop this practice? It seems almost criminal, and the sums of money are so huge. How can the government claim to have a focus on increasing home ownership, if increasing numbers of those home owners are ending up with unaffordable/unsaleable homes.

I wonder if it's a future PPI type situation. I'm not a lawyer of any type but I would question whether there isn't some comeback if your builder told you and sold the house based on predictions of the ground rent and lease price which were later superceded after one of these deals.

IKE25

I think legislation will change in 4 or 5 years when all these people who bought new builds under these lease terms struggle to sell - but it won't apply retrospectively i.e. you signed up to it so tough.

Another consideration is that these large housebuilders are known for making generous donations to the Conservative Party.

lee111s

Thankfully we're buying the freehold on ours. It wasn't cheap at almost seven grand however, it's worth it in my opinion for the peace of mind alone.

We're planning on living here for a long, long time.



On the update front, we had a peek in last night and the kitchen hasn't been fitted although it's all there boxed up. I'm not now so hopeful of NHBC sign off tomorrow however, even if it's Monday or Tuesday next week, we're still going to push for completion on the 24th (our builder said they like the full 10 working days between notice and completion to sort any issues out) but it will make life a hell of a lot easier for us and our buyer if we get in on the 24th!

kirtsypoos

I've been having a mild panic since I saw all the info about leasehold/freehold issues but I've just checked ours and it says freehold of house and garage so that's a bit of a weight off my mind!

Going back in on Sunday to have another look round. The kitchen was in 2 weeks ago, so tiling and bathrooms should be done now...hopefully! Still aiming for 16th Dec but we are yet to exchange - should be by 26th Nov so fingers crossed solicitors pull their fingers out!