Pressing for better deal for leaseholders

WE can agree there is a need to promote fairness and transparency for the growing number of leaseholder homeowners.

Historically leasehold arrangements were used primarily to manage properties that share space or facilities, such as flats, so that there is collective responsibility for the upkeep of roofs, lifts and entrance areas.

However, an increasing number of new-build houses are now being sold on leasehold terms for no obvious reason, other than to create an additional revenue stream for developers.

There are 1.2 million leasehold houses currently recorded in England and the number of leasehold sales is growing rapidly.

While a leasehold house may be presented as a cheaper option than buying the freehold, it is not always clear to homebuyers what additional medium or long-term costs they may face.

These can include, paying ongoing and increasing ground rent or having to pay arbitrary fees to the freeholder for permissions to make even the most minor alterations to a property, such as decorating.

There can also be great costs or the financial impact of extending the lease or buying the freehold after moving in.

Locally, for example, I have heard from residents of new-build houses in Strines entering into the fifth year of a lease and the prospect of the ground rent increasing is causing financial strain and making properties less-saleable.

Elsewhere, residents of the new-build Offerton Park Estate tell me they are subject to above inflation ground rent increases every 10 years and they were not offered a chance to buy the freehold at a reasonable cost when moving in.

These are just a few examples and I’m sure there are others which highlight the unfair situation some leaseholders find themselves in.

This is why in the House of Commons last week I asked the Housing Minister to tackle unfair leaseholds retrospectively, so that my constituents on new-build estates in Offerton and Strines, and elsewhere, get a better deal.

She told me the Government are committed to tackling unfair leasehold practices and working with the Law Commission to make buying your freehold or extending your lease easier, faster, fairer and cheaper.

She assured me that leaseholders will get the right support to deal with onerous ground rent and will consider further action if developers’ schemes to compensate individuals do not go far enough.

I will be continuing to press the Government for action to give better protection for leaseholders and, if you have encountered similar problems with your home, do get in touch with my office.