Fleecehold

D_M_E

Here's an article from the BBC to which a lot of us can relate

https://www.bbc.co.uk/news/uk-england-46279048

epinjy

Can't help but think they should do a bit of research and read exactly what they are signing up to when they buy "one of the biggest investments of their life". If there wasn't so many sheep blindly jumping into these things then they wouldn't exist.

Kat88

For some people it really is the only way they can get on the housing market, using schemes such as help to buy and you accept the service charges. It doesn’t seem very fair though, as the majority don’t have to pay for maintenance of supposed green areas... it is covered by the council through council tax. Councils can no longer afford to maintain the area they have let alone take on new so we are stuck in this awful situation. Older houses will be more popular I think moving forward as these fees become significant. New builds around me with no real green space are about £300-400 in year one...

Slithery

Kat88 wrote: »

For some people it really is the only way they can get on the housing market, using schemes such as help to buy and you accept the service charges.

Yes, but that is their choice having read all of the documentation.

Some of us decide to rent or not use these schemes when buying because we've read the paperwork...

Lokolo_2

I agree, people should put much more research into these terms before buying, I'm guilty of not doing that and have learnt from it. When I bought my first flat it had only 56 years on the lease remaining, the purchase price seemed like a bargain, but I soon came to find out why, as it would cost me just shy of £30k to extend the lease to a length that would make it saleable! Fortunately I was able to save up for this but I have seen posts from people caught out. So the lesson is definitely put in the research before committing to what will be one of the most expensive transactions of your life!

On the face of it, it does seem like freeholders are profiting massively from leaseholders from these lease extensions and onerous ground rent terms with very little being provided to the leaseholder in return! So glad I own a freehold house now with no such extra costs!

Stuart_McCarroll

We bought a new home, in full knowledge that the surrounding recreational green spaces were 'Freehold', however we were also promised that residents would be appointed as Directors of the 'Management Company'

Leaseholders in the housing association are paying 'blind' because the charges are bundled up in their association fees.

Home owners are billed £360 each annually, for 0.143ha grass maintenance.

While the houses are all being sold, an interim Director was appointed, he in turn appointed HIS OWN Management company to take care of the maintenance and his firm acts as company secretary.

The Director will not speak with residents, the Property firm will not call an AGM/EGM as per the management company Constitution, to appoint residents to become company directors using the standard AP01 form.

The original developer retains a 75% company vote share, and can appoint/remove directors unilaterally - but refuses to do so.

The contracts are sound, but the stated AGM where residents can be appointed has not happened in 3 years (or residents were not invited).

To top it all off, the property firm acting as secretary has declared the Management Ltd Company 'Dormant' with companies house - in spite of what should be a £10k annual turnover and a growing contingency fund.

The same property management firm appears to be linked to 190 developments, has a cash/assets of only £600k, these insufficient reserves should multiple incidents occur would be wiped out. The the Directors fees are healthy.


Without primary legislation, council planners MUST either:
a) Adopt all land, taking s106 to cover ongoing management or
b) Obligate developers to offer a firm Director position to every home owner with 12 months of occupancy
c) Force the foundation of trust rather than private ltd companies to co-create and deliver services.

cloo

People should do their research, but it still seems shocking to me that there is not some duty on sellers or agents to put forward the lease situation. We've always checked it out (we only bought and sold one leasehold property) but you do still hear of people whose solicitors managed to miss that a property had a short lease remaining. It does seem far too easy to be caught out if you're not aware.

Sachs

You could say that about pretty much every consumer issue the government regulates though. Houses should not be being sold leasehold and freeholders should have the right to appoint their own resident association directors. Leaseholders already do, it's just a regulatory oversight that's needs to be fixed.