HTB starts to sting

michaels

Conrad wrote: »

£13k for a freehold is a bargain, I don't know what this woman is whinging about - this talk of her property having turned out to be a terrible investment is ridiculous. Trust a know nothing 'journalist' to get it all wrong yet again, more fake news.

Isn't the point that whilst you know what it should cost to buy a freehold (working in the industry), most buyers do not and should be advised correctly by their solicitor?

Graham_Devon

mrginge wrote: »

This is nothing to do with HTB.

Well it is, as the article links into HTB. The telegraph go further with the HTB angle.

The point being it's easier to prove the case of miss-selling if the solicitor you have to use for HTB has to be a HTB vetted solicitor.

The telegraph article goes more in depth about the HTB aspect.

Graham_Devon

PPI style compensation is now in place from Taylor Wimpey with £130m set aside.

http://www.bbc.co.uk/news/business-39732174

Campaigner Sebastian O’Kelly, who runs the Leasehold Knowledge Partnership, said: ‘What housebuilders are doing is cheating their customers who simply want a home by creating an investment asset – the freehold – at their expense. This is then sold on to investment companies.

‘These families cannot sell their homes. Any solicitor acting for a potential buyer will see that the terms of the lease are too onerous and advise their client not to buy. The original purchasers are stuck.

‘The housebuilders are also having a laugh with us, the taxpayers, in palming off these flawed products which are sold to buyers on the Help to Buy scheme.’

One in seven of those who bought using HTB have the type of leasehold discussed.

Government stance when it comes to those who have been affected by this under HTB.

http://www.insidehousing.co.uk/javid-government-will-use-help-to-buy-to-police-leasehold-practices/7019425.article

Jon_B_2

It's still absolutely f*** all to do with HTB.

It's to do with new builds, so of course people buying with HTB will be affected, but HTB is not causing it !!!!!!.

Graham_Devon

Jon_B wrote: »

It's still absolutely f*** all to do with HTB.

It's to do with new builds, so of course people buying with HTB will be affected, but HTB is not causing it !!!!!!.

Never said it was the cause.

So all this !!!!!!'ing is a waste of expelled energy. You are putting words in my mouth and then getting all huffy about those words you just created.

My point throughout is that I wouldn't expect people to be receiving compensation for miss selling when they are buying under a government (taxpayer) guaranteed scheme. The HTB solicitors should have identified this issue and fed it back to the government, or at least the client buying. Everyone knew about it, so why was it allowed?

You don't expect there to be miss selling or cover ups when looking to the government for help buying.

The risk is transferred in some part to the taxpayer in this scenario.

westernpromise

AIUI this became a thing during the 2008 downturn, when new properties were hard to sell. Builders reduced the headline price but built in these ground-rent doublings which, if you work out the NPV, meant that the complete all-in price had not been reduced at all.

mayonnaise

This is nothing to do with HTB.