Should the Government act NOW to reform leasehold? LEASEHOLD SCANDAL

Salemicus

An estate agent is nothing like a car dealer. The dealer buys and then re-sells cars, taking on the risk, and (potentially) providing buyers with a warranty. The estate agent does nothing of the sort - just an agent for the buyer. Clue is in the name.

Asking the estate agent for particular details about the property is like asking "What Car?" about a car you saw advertised. They don't know, and they don't have any particular way of finding out. Both will tell you to ask the vendor.

And this has nothing to do with leasehold vs commonhold vs freehold as the exact same issues arise regardless. 

eddddy

Salemicus said:

The estate agent does nothing of the sort - just an agent for the buyer. 

Not sure if that was a typo - but the EA is the seller's agent, not the buyer's.

Salemicus said:

Asking the estate agent for particular details about the property is like asking "What Car?" about a car you saw advertised. They don't know, and they don't have any particular way of finding out. Both will tell you to ask the vendor.

That's completely incorrect.

The Property Ombudsman's Code of Practice for Estate Agents makes it very clear what information an EA should know about a property. Here's an extract...

7k 
In accordance with paragraph 5e, where the title is registered at HM Land Registry, you should seek to obtain title information to verify the tenure of the property.
 
In regard to leasehold properties, in accordance with paragraph 4e, you must provide material information to the consumer so they can make an informed transactional decision. Material information in respect of the lease includes, but is not limited to, the following:

• Number of years remaining on the lease;

• Amount of ground rent (*) and when payable, together with details of how this will increase over time, if applicable;

• Rent payable in the case of a shared ownership arrangement;

 
For leasehold, commonhold and freehold properties where the owner has a legal obligation to contribute towards the maintenance costs of a shared amenity, material information would include, but is not limited to the following:

• Amount of service charge (*), and when payable;

• Amount of any event fees (*), and when payable;

• Amount of reserve fund (*) contribution and when payable (if not already included in other charges);

• Approximate total amount of reserve fund;

• Details of any event-related fees and charges payable under the lease that are triggered by certain circumstances or events;

• Details of any other fees / charges contained in the lease, commonhold community statement or title deeds.

 
For all properties, material information would include, but is not limited to the following;

• Details of any unusual restrictions or covenants affecting the use and enjoyment of the property.

Link: https://www.tpos.co.uk/images/Codes_2019_a5/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A5_-_Effective_1_June_2019.pdf
 

SpiderLegs

Comms69 said:

You say it needs more oversight, i say it needs less. I want the state to have the absolute minimum input into daily lives. 

 Comms69 said:

Quite sensibly I rent and I work in the public sector

🤣🤣🤣🤣🤣🤣🤣

PegoAC

Will banks provide a mortgage on a leasehold? 

Not sure if this is all banks or when this policy started. A friend was looking at a house on this estate & the bank wouldn’t lend because the property was leasehold. 

I've heard many leasehold properties are now being trapped because they have fallen into assured tenancies and lenders are dubious to lend.
First time buyers have put an offer in on my house only to find the bank will not lend.

ratechaser

So... I'm just wondering how well Katie thinks this is all going. You know, the attempt to assimilate a new discussion board...?

Never mind, I think even the Borg would have given up if Comms69 was captain of the Enterprise   

RC (former leaseholder, who actually understood what it meant, despite his tender age...)

Comms69

SpiderLegs said:

Comms69 said:

You say it needs more oversight, i say it needs less. I want the state to have the absolute minimum input into daily lives. 

 Comms69 said:

Quite sensibly I rent and I work in the public sector

🤣🤣🤣🤣🤣🤣🤣

Not sure what’s funny? 

Comms69

ratechaser said:

So... I'm just wondering how well Katie thinks this is all going. You know, the attempt to assimilate a new discussion board...?

Never mind, I think even the Borg would have given up if Comms69 was captain of the Enterprise   

RC (former leaseholder, who actually understood what it meant, despite his tender age...)

Voyager everytime! 

eddddy

PegoAC said:

Will banks provide a mortgage on a leasehold? 

Not sure if this is all banks or when this policy started. A friend was looking at a house on this estate & the bank wouldn’t lend because the property was leasehold. 

I've heard many leasehold properties are now being trapped because they have fallen into assured tenancies and lenders are dubious to lend.
First time buyers have put an offer in on my house only to find the bank will not lend.

It's better to start a new thread for your question - because it will get lost in amongst a lot of other stuff here, but...

• Yes - banks will offer mortgages on leasehold properties, as long as the lease meets their conditions.

• The property your friend found must have had a terms in the lease that the bank wouldn't accept. You could ask your friend what those terms are.

• The Assured Tenancies 'issue' - yes that's an issue if the ground rent is high. But banks say they will offer mortgages, if you take out indemnity insurance

• The house you're selling - Ask the buyers what their bank didn't like about your lease. (For example, it might be quickly escalating ground rents)

SpiderLegs

Comms69 said:

SpiderLegs said:

Comms69 said:

You say it needs more oversight, i say it needs less. I want the state to have the absolute minimum input into daily lives. 

 Comms69 said:

Quite sensibly I rent and I work in the public sector

🤣🤣🤣🤣🤣🤣🤣

Not sure what’s funny? 

Well firstly, the irony that you want the ‘absolute minimum’ from the state, but they have to employ and pay you 

But then also the hypocrisy that as a renter you enjoy legal protection against abuses by your landlord, but would deny similar protections to leaseholders against their landlords.

sounds like the ‘absolute minimum’ is just the things that coincidentally benefit you.

eddddy

SpiderLegs said:

But then also the hypocrisy that as a renter you enjoy legal protection against abuses by your landlord, but would deny similar protections to leaseholders against their landlords.

Leaseholders have a lot of legal protection against abuses by their landlords - you need to take a look at the Commonhold and Leasehold Reform Act,  Leasehold Reform Housing and Urban Development Act, The Landlord and Tenant Act, etc.

Ironically, Leaseholders have more protection than Freeholders over things like unreasonable service charges.