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Leasehold Flat/House mis-selling? shared equity government. Gov CMA are investigating.
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Poet100
Posts: 22 Forumite
The Competition and Markets Authority (CMA) are investigating potential breaches of consumer protection law in the leasehold housing market.If you have a house or a flat under leasehold you may have been mis-sold ?
Are you aware of a devaluing factor of your leasehold? Are you aware that once your lease term i.e 'number of years remaining' falls below 80 years then your property/lease will depreciate significantly in value... were you made aware of this at the point of purchase?
This is a known devaluing factor and is not the same as a property increasing or decreasing due to market conditions.
Did you buy your lease via a government backed product such as a shared equity loan? i.e 'Help to Buy' or 'Help2Own' if so then the government arguably were the overseers and should have ensured that you were made aware of the 80 year devaluing benchmark.
Did you request a lease extension and because you were on a 70/30 percent arrangement with the freeholder via the government endorsed product and were turned down? Were you told at the point of purchase that the freeholder (could be a housing association) had the right to veto your request?
These are just a few of the problems that are being thrown up by leaseholds, there are many others, like service charges, ground rent ect. The Competition and Markets Authority are investigating. If the government in some cases are responsible then this investigation is perhaps not ideally being dealt with by the right department, marking their own homework is not necessarily going to bring a just outcome. It could be that in your case the conveyancers or housing association are at fault. Fundamentally government were the overseers and should have ensured transparency guidelines were adhered to. Somebody needs to be brought to account.
Make your voice heard.
If you are affected you need to contact them by the 12th of July. Follow their instructions online.
Here is the link:
http://www.gov.uk/cma-cases/leasehold#call-for-your-views
Are you aware of a devaluing factor of your leasehold? Are you aware that once your lease term i.e 'number of years remaining' falls below 80 years then your property/lease will depreciate significantly in value... were you made aware of this at the point of purchase?
This is a known devaluing factor and is not the same as a property increasing or decreasing due to market conditions.
Did you buy your lease via a government backed product such as a shared equity loan? i.e 'Help to Buy' or 'Help2Own' if so then the government arguably were the overseers and should have ensured that you were made aware of the 80 year devaluing benchmark.
Did you request a lease extension and because you were on a 70/30 percent arrangement with the freeholder via the government endorsed product and were turned down? Were you told at the point of purchase that the freeholder (could be a housing association) had the right to veto your request?
These are just a few of the problems that are being thrown up by leaseholds, there are many others, like service charges, ground rent ect. The Competition and Markets Authority are investigating. If the government in some cases are responsible then this investigation is perhaps not ideally being dealt with by the right department, marking their own homework is not necessarily going to bring a just outcome. It could be that in your case the conveyancers or housing association are at fault. Fundamentally government were the overseers and should have ensured transparency guidelines were adhered to. Somebody needs to be brought to account.
Make your voice heard.
If you are affected you need to contact them by the 12th of July. Follow their instructions online.
Here is the link:
http://www.gov.uk/cma-cases/leasehold#call-for-your-views
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