MP is urged to back leasehold sales curb
ASOUTHPORT councillor has launched a campaign to halt what she calls the alarming trend in the number of new properties offered for sale on a leasehold basis.
Cambridge Ward representative Pat Keith has voiced her concerns to Sefton Council and, after consultation with Southport MP John Pugh, he has taken up the matter with the Government.
Cllr Keith said: “I stumbled across this very worrying practice purely by accident and, after much investigation, I am deeply concerned at the number of new leasehold houses on sale and also by the short length of some of the leases.
“Historically, Southport has had a fair number of leasehold properties but the leases extended to 999 years with a peppercorn rent. Now I have discovered that many new houses have leases reduced to just 125 years with substantial ground rents and service charges.
“These terms are not made very apparent to prospective buyers when they go to view properties or on the sales literature. I have discovered that some people are not made fully aware of their leasehold conditions and additional charges until they have already spent money on mortgage applications or surveys. This can have drastic repercussions.
“I have learned of one particular case where a lease was sold on by the freeholder and the new terms meant that the ground rent on the property would rise tenfold after 17 years, making the house virtually unsaleable.”
Cllr Keith raised her concerns with Sefton Council and has had discussions with Dr Pugh, who raised the matter with the Housing Minister, Gavin Barwell.
Dr Pugh said: “I was shocked to learn of the increase in leasehold properties which can only add to the difficulties of prospective purchasers at a time when the provision of housing is one of our most pressing problems.
“In the rush to encourage new housing, the Government is letting builders get away with what, frankly, is a feudal practice.”
Cllr Keith said: “I am very glad that John is raising this at Parliamentary level, because what deeply worries me is that this situation is such a clandestine factor in property purchase and it is almost impossible to obtain official figures on the number of new leasehold properties.
“The key message for anyone considering purchasing a new property is: buyer beware. It is essential they obtain the fullest information on all leasehold conditions that may apply.
“While the building of leasehold properties is increasing in England, leasehold was abolished in Scotland in 2004 and is being phased out in most other countries. The Long Leases (Scotland) Act 2012 automatically converted remaining long leases to outright ownership.
“In the Republic of Ireland, remaining leases are being phased out, with leaseholders able to purchase the freehold at much lower prices than is common in England and Wales.”