Campaigners hail lease ‘ban’
SOUTHPORT councillor Pat Keith, who has led the local campaign against new leasehold properties, has warmly welcomed the Government’s proposed ban but sounded a warning for current buyers.
The Government has announced that all new build houses will not be allowed to be sold as leasehold with communities secretary Sajid Javid labelling the system as “feudal”.
Cllr Keith, Lib Dem representative for Cambridge Ward, said: “I have been alarmed by the increase in this leasehold scam and the clandestine nature of all involved, which include developers, estate agents and solicitors so I’m delighted that some long overdue action is now being taken.
“But while the Government decide on what steps to take in the future my concern is for those currently caught up in this leasehold financial web and others who are currently embarking on property purchases.
“I would strongly advise anyone in the latter category to make absolutely certain with their legal representatives that there are no hidden leasehold or ground rent charges in the contract.”
Some homeowners have been prevented from buying their freehold and recent cases have been discovered where exponential ground rent increases will raise it to a level more than the purchase price of the property.
Cllr Keith’s LibDem colleague, Cllr Sue McGuire, commented on the announcement: “Pat and I have been fighting for a change to this iniquitous system for some time and we have visited housing developments on undercover missions to ascertain how lease- hold properties are being sold.
“The words ‘misleading’ and ‘secretive’ come to mind so we are both awaiting this proposed government action.
“We have, though, found local developments where properties are being sold freehold which makes a mockery of any claims that leasehold is the only cost effective way of building houses.”