Please Read if you are on Shared Ownership Scheme or a Leaseholder or Pay Service Charges

eddddy

mkgirlchick wrote: »

I only mention Shared because on Governments own website "buy" is used time and time again when explaining shared ownership but how can it be buy when it says Leasehold in law is just a tennancy.

I'm not sure that the word "buy" is a problem.

If somebody "buys a 90 year lease", it's hard to imagine that they don't understand what that means.

Just like if you "buy a train ticket", or "buy a holiday".


Similarly, I can't see that a phrase like "buy a share of 90 year lease" is misleading. I'm sure buyers can understand the concept of owning, say, 25% of a lease, and paying monthly rent for the other 75%.


Having said that, there are many potential problems with leasehold and shared ownership - and people probably need help in understanding those potential problems.

But I don't think changing the name from "Leasehold" to "Lease Rental" will make any of those problems go away.

hazyjo

eddddy wrote: »

But I don't think changing the name from "Leasehold" to "Lease Rental" will make any of those problems go away.

Indeed. You still 'own' it in the sense you can make profit from it. You don't just pay 'rent' and walk away with nothing. If it doubles in value, you keep that.


Really stunned/astounded that you didn't know all this. Hardly a scam, just the way leasehold works :think:


And you say there's a FB group? So tempted to visit... does nobody go on there to say this is in no way a 'scam' and perfectly normal?

mkgirlchick

eddddy wrote: »

I'm not sure that the word "buy" is a problem.

If somebody "buys a 90 year lease", it's hard to imagine that they don't understand what that means.

Just like if you "buy a train ticket", or "buy a holiday".


Similarly, I can't see that a phrase like "buy a share of 90 year lease" is misleading. I'm sure buyers can understand the concept of owning, say, 25% of a lease, and paying monthly rent for the other 75%.


Having said that, there are many potential problems with leasehold and shared ownership - and people probably need help in understanding those potential problems.

But I don't think changing the name from "Leasehold" to "Lease Rental" will make any of those problems go away.

Ok yes i get you to a degree BUT the gov website itsself implies its a share of your home not a share of a piece of paper is all i mean. To me that would be heres a house worth £200k i own 50% so i own 50% of that house as it stands so 100k, NOT heres a piece of paper saying you 'own/lease' 50% worth 100k to me it implies it is the house not the piece of paper that you own (the way shared ownership is worded)

starving_artist

The government has already instructed the Law Commission to review exactly these issues and make recommendations with a view to making reforms in the near future.

https://www.lawcom.gov.uk/project/residential-leasehold-and-commonhold/

Sachs

You're not wrong that some reforms are needed but your scattergun approach doesn't help. You've mentioned about 4 different issues, some the government has already stopped (leasehold housing) and some the government have announced action on.

I think you need to really understand the issue you are trying to raise awareness on. Be specific.

Sachs

mkgirlchick wrote: »

Ok yes i get you to a degree BUT the gov website itsself implies its a share of your home not a share of a piece of paper is all i mean. To me that would be heres a house worth £200k i own 50% so i own 50% of that house as it stands so 100k, NOT heres a piece of paper saying you 'own/lease' 50% worth 100k to me it implies it is the house not the piece of paper that you own (the way shared ownership is worded)

But you do own 50% of it for the duration of your lease. Long leasehold property interests are a fundamental cornerstone of property rights and laws in England and Wales. I don't know what to tell you, it's a bit like saying you don't like the fact we use English Common law rather than french style civil law. It is what it is.

Also, presumably the freeholder in your case is the entity that owns the other 50% so for them it's about control. Is there not provision in your lease that once you own 100% you also can buy the freehold?

simondv

Long leasehold reform. England and Wales are the only places left in the world which still use feudal leasehold for communal living. Most other places now use Commonhold where each flat owner has a freehold share in the building. I have a leasehold flat.

Problems with Leasehold -
The law is unbalanced strongly in favour of freeholders over leaseholders, freeholders can afford expensive lawyers at the tribunal or court, and get the leaseholder to pay whether win or lose.
Some big developers sold houses as leasehold, the buyers were not offered the freehold which was then sold on to offshore investors by the developer. The new freeholder wants a fortune to sell the freehold back to the house buyer. These house buyers were mis-sold, because the developers colluded with solicitors to not reveal onerous terms in the lease.
Rising ground rents, and permission fees paid to remote freeholders who do nothing for them.
Expensive and difficult to extend a lease or buy the freehold, either individually for a house or as part of a group for a block of flats.
Poor managing agents of buildings who often provide an expensive service and can be hard to remove.
A lease is a wasting asset, when it reaches 80 years it gets more expensive to extend the lease.
Leaseholders pay for their own flat and the upkeep of the building. The freeholder often adds no value and does nothing.
Forfeiture - The ultimate sanction where a small debt of £350 owed for 3 years can lead to loss of the whole lease, maybe worth £150,000. This is used by freeholders to threaten leaseholders who query their charges.
Fleecehold - False freehold where houses are sold with rising estate charges and permission fees, and difficult to remove the developer's servicing company. Most new houses these days are sold fleecehold.
Leasehold originates from 1066 when we had the King and his Lords, below them tenants and serfs. It is time it was removed. It is one of the most unfair laws in England and Wales today.

!People have lost their homes, and life changing sums of money because of this law and the behaviour of some freeholders and their managing agents.

If you or your family or friends are affected by this feudal, unjust system you can do this.

Please sign the Parliament petition to get Commonhold.

Please join the National Leasehold Campaign

jimbog

simondv wrote: »

I have a leasehold flat.

Problems with Leasehold -

What made you decide to buy a leasehold property?

simondv

I bought a flat for my wife's parents to rent. They moved out after 2 years because they wished to move to Spain. I was not aware of all the faults with leasehold tenure until I studied the subject for a year. I am not stupid, but leases are written in opaque English so a good solicitor is always needed. Leasehold has many deficiencies and needs to be abolished in favour of Commonhold. The big developers and remote freeholders are desperate to maintain it so they keep the money rolling in. Ground rent is for absolutely nothing at all in most cases. The leaseholder pays for every aspect of the building and has less rights than a shorthold tenant.

simondv

The Parliamentary Select committee on leasehold don't seem to agree with you when they reported on this last week, having taken evidence from 1000s of people.