Leasehold trap – major builders could face court action over ripoff leas...

Leasehold trap – major builders could face court action
over rip-off leases on newbuild properties

The UK's largest housebuilders are being investigated by a
watchdog after "troubling evidence" has emerged over the way
leaseholds on newbuild housing estates have been sold to property buyers.

Major companies like Barratt Developments, Countryside
Properties, Persimmon Homes and Taylor Wimpey are facing legal action from the
Competition and Markets Authority (CMA), which could take the developers to
court.

Buyers have been caught in a leasehold trap, with rising
ground rents, unfair fees and properties which could become difficult to sell.

The CMA has demanded information from the developers and could
go to court.

Many people do not realise that when they buy a leasehold
flat or house, they own a lease which gives them the right to use the property
for the length of that lease. However, leaseholders are also restricted on what
they can do with the property and often have to obtain their freeholder or landlord's
permission for any work or changes to their homes.

Typically, on a leasehold flat or house, a new lease is
granted for a fixed period of between 99 and 125 years – in some cases 999
years. Whilst it’s true that people may extend their lease or buy the freehold,
this can be expensive and many people find themselves at the mercy of a greedy
landlord.

Houses are also sold on a leasehold basis where house owners
are charged expensive ground rent and service charges, in addition to rip-off
fees just to make alterations or improvements to their homes. Most flats are
sold as leasehold and most houses as freehold. A leasehold house is notoriously
difficult to sell and should be avoided.

The CMA watchdog said leasehold buyers were being hit with
ground rents that doubled every decade, and said that others were wrongly advised
that they could not buy the freehold on a site.

Katie Kendrick, a leasehold victim, set up the National
Leasehold Campaign six years ago and now has 18,000 members.

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Millions of people face a bleak future post-Coronavirus
lockdown, as businesses disappear and the job furlough scheme eventually comes
to an end. However, life doesn’t have to end because of lockdown! You can join
thousands of ordinary people who have increased their income and added
streams of new income during this period.

Are you ready to adapt to the new economic model?

As lockdown restrictions around the world are being eased,
the economic model has subtly changed forever. How will you adapt to this new
way of working and running a business, what obstacles and opportunities lies
ahead? Will you be a participant or spectator in this revolution?

By Charles Kelly, Wealth Mentor, Property Investor, Author
of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.

There are more examples and practical
steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3
R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it
out on Amazon http://bit.ly/2MoneyBook.

If you’d like further information on wealth mentoring and
coaching, how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.net
or send me a message through Facebook or my Money Tips Daily community. See
more articles at www.moneytipsdaily.com