Leasehold reform proposals could save homeowners £1,000s - MSE News

dnees

HRH_MUngo wrote: »

I have a modern flat which I rent out. Some of the other flat holders had difficulty selling because of rapidly increasing ground rents. I rang the developers (Persimmon) as I had heard that they would allow a deed of variation to the ground rent increasing by RPI, that lenders would accept. I have instructed a solicitor on this and it will cost me £750. Hope this helps someone.

But bring on the commonhold, can't come quikly enough!

Hope your not doing this informally , (you can still be changing things informally through a solicitor). Are you getting permission fees taken off your lease , you probably have some! Be careful! Are you a member of the National Leasehold Campaign ?

HRH_MUngo

dnees wrote: »

Hope your not doing this informally , (you can still be changing things informally through a solicitor). Are you getting permission fees taken off your lease , you probably have some! Be careful! Are you a member of the National Leasehold Campaign ?

I am doing it through a solicitor. Nothing has been done as yet apart from him approaching the freeholder.

I am not sure what you mean, can you please clarify?

dnees

HRH_MUngo wrote: »

I am doing it through a solicitor. Nothing has been done as yet apart from him approaching the freeholder.

I am not sure what you mean, can you please clarify?

Changing ground rent to RPI is not always better than Doubling. And you will probably have permission fees in your lease, these are ongoing fees. Also you may we’ll have uncapped maintainance fees for roads and public spaces. This is what I mean.

HRH_MUngo

dnees wrote: »

Changing ground rent to RPI is not always better than Doubling. And you will probably have permission fees in your lease, these are ongoing fees. Also you may we’ll have uncapped maintainance fees for roads and public spaces. This is what I mean.

Well I am sure the solicitor will sort all those things out, that is what I am paying him for! If the terms are not suitable then I won't do it.

dnees

Yes that’s what 1 million purchasers thought! The best thing to do is go to the National Leasehold Campaign ( which will give you lots of information and background on leasehold and Fleecehold properties with doubling ground rent and RPI) it has been proved that you can not just leave it to your solicitor, you will need to do some checking. You’ll be able to ask any questions you have on the changing to RPI on that Facebook page and get help from people who have actually gone through the process. Good luck. The leasehold Knowledge Partnership is great for information to.

GDB2222

dnees wrote: »

Changing ground rent to RPI is not always better than Doubling. And you will probably have permission fees in your lease, these are ongoing fees. Also you may we’ll have uncapped maintainance fees for roads and public spaces. This is what I mean.

I am puzzled. How would you cap the fees for maintaining roads and public spaces?

Obviously, there are issues that could arise over value for money and excessive management charges. However, if the road needs maintenance, and it’s unadopted by the council, the residents will simply have to meet the cost, whatever it comes to. It makes no difference whether it’s a rent charge or commonhold to the cost. At some stage, you’ll have to pay for the work. Possibly, with commonhold, one or two awkward households can stymie the work for everyone else.

dnees

HRH_MUngo wrote: »

Well I am sure the solicitor will sort all those things out, that is what I am paying him for! If the terms are not suitable then I won't do it.

https://twitter.com/tresacic/status/1218309013731008514?s=21 This is just an example of misselling flats that are leasehold. Check it out on twitter this morning.

dnees

Have just posted this on Twitter , it will help you , info re buying a lease and what to ask before purchasing. https://twitter.com/Denisec35101272/status/1218631756263366662?s=20

dnees

GDB2222 wrote: »

I am puzzled. How would you cap the fees for maintaining roads and public spaces?

Obviously, there are issues that could arise over value for money and excessive management charges. However, if the road needs maintenance, and it’s unadopted by the council, the residents will simply have to meet the cost, whatever it comes to. It makes no difference whether it’s a rent charge or commonhold to the cost. At some stage, you’ll have to pay for the work. Possibly, with commonhold, one or two awkward households can stymie the work for everyone else.

Firstly, no one should be paying to maintain roads and public spaces, we all pay council tax for this! The Council are passing the cost to residents because the developer want to use their own company to maintain, so quids in all the way. Also it is usually written into the lease that you HAVE to pay or you will be taken to tribuneral , (you will have to pay all those costs as well), or you are turfed out of the property still with your mortgage to pay. As I have said, with commonhold you choose what company and how much you want to pay for any maintenance required. Commonholders can not shirk their share of payments. Check out the massive work that the Law Commission have done on commonhold reform, they have included this scenario of a commonholders not paying their share.

dnees

HRH_MUngo wrote: »

My son has a leasehold flat as it is all he could afford. He bought it in 2012. It was built in the 1960s and we gave him the money to extend the lease.

He was disappointed and angry that he didn't 'own' his flat in the same way we own our freehold bungalow, although he accepted he hadn't a lot of choice as it was all he could afford. I cheered him up a bit by pointing out that he could 'sell' the leasehold interest (and profit from it), just like we could sell our freehold bungalow, especially now that he has a lease that lasts until 2140. However, had we not have paid for him to extend the lease, he would have had a depreciating asset with a lease of under 60 years. This would be difficult to sell because it would be unmortgageable.

I do agree that the leasehold system is archaic and should be abolished, although in a large block of flats such as my son lives in, I assume you would still need some sort of management company.

Hi, sorry to hear your story, at least you have managed to extend the lease for your son.
Yes in a block you will need some kind of management company and a contingency fund to pay for any normal maintenance, I do not include cladding or faulty dangerous building work in the NORMAL maintenance of course. Government must step in properly for ALL those flat dwellers, note I do not say owners because they are not, they are tenants in law, even though they all have hefty mortgages and are bled dry by installed (by developers) management companies. Please join the National Leasehold Campaign and get help. Martin Lewis, please can you do some more publicity on the leasehold scandal and help bring TOTAL awareness to leaseholders out there that have no idea of the sorrow that awaits them when they do find out. But to be forewarned is forearmed. Thanks!