Freeheld to ransom...
How would you like having to pay £108 to ask if it’s OK to change the carpets in your home?
That’s just one of the charges faced by residents in a new-build housing estate.
Although they’ve bought the leaseholds, the freeholds were kept by housebuilder Bellway Homes.
Bellway sold them to another company with the convoluted name Adriatic Land 6 (GRI) Limited, which is represented by agents HomeGround Management.
HomeGround charges £108 for an inquiry, such as asking for permission to change the carpets, and if you go ahead, there could be another £300 fee.
If you want permission to build a conservatory, there’s a fee of £1,440.
One homeowner at the Orchid Meadow estate in Formby, Merseyside, told me: “We expressed an interest from day one in buying our freehold but were told by Bellway that we couldn’t.
“In February, Bellway told us that it had been sold to Adriatic Land – we were only notified after the event.
“We are happy with the house and Bellway have done a good job, but the way they sold the freehold from under us was very underhanded.”
Their case has been taken up by local Labour MP Bill Esterson.
“I believe this is an issue the government should intervene in. Purchasers are being held to ransom,” he said.
“A Labour government would end the routine use of leasehold ownership in new housing developments as this is nothing less than legalised extortion.”
A spokesman for the Department for Communities and Local Government said that the Housing White Paper will tackle unfair leaseholds, adding: “It’s unacceptable that home buyers are being exploited with unfair charges and unfavourable ground rent agreements.”
Bellway Homes told me that its leasehold terms are “clearly and explicitly detailed”.
A HomeGround spokesman said its charges were “reasonable and fair and always compare very favourably with what a solicitor would charge”.
Right. But has anyone ever met a cheap solicitor?