Interesting comments today about the increase in leasehold properties - many new build houses are leasehold. Many leaseholders are finding themselves subject to huge ground rent increases that they hadn't spotted when they bought the property.
Using a good solicitor when you purchase a property will ensure that all these details are checked and any unusual charges are highlighted. Our team at Gardner Leader is on hand to check the small print and ensure you are fully aware of what you're signing up to.
Most leaseholds are flats, but the report highlights the growing number of newly built houses being sold as leasehold by developers, “a practice which was almost unheard of 20 years ago”. Some buyers of leasehold houses are finding themselves trapped in properties made unsaleable by rocketing ground rents, with many doubling every 10 years. In one case highlighted by the Guardian, the owner of a £100,000 flat bought on a 125-year lease in 2010 found this year it was valued at zero by mortgage companies because of the ground rent clause.