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Government plans to ban leasehold sales of new houses

Posted: 17th August 2017   In: Residential Conveyancing

The government has announced plans to clampdown on unfair practices involving leasehold homes.

The measures include a ban on new build houses being sold as leaseholds as well as restricting ground rents to as low as zero.

Leaseholds generally apply to flats with shared spaces, but increasingly, developers have been selling houses on these terms.

Ministers say change is needed because the terms of some leases are becoming increasingly onerous to those purchasing a leasehold flat or house. For example, some people have been told they need to pay thousands of pounds to their freeholder to make simple changes to their homes.

Recent cases include:

Communities Secretary, Sajid Javid said: “It’s clear that far too many new houses are being built and sold as leaseholds, exploiting home buyers with unfair agreements and spiralling ground rents. Enough is enough. These practices are unjust, unnecessary and need to stop.

“Our proposed changes will help make sure leasehold works in the best interests of homebuyers now and in the future.”

Other measures, which are now subject to an 8-week public consultation, include:

We shall keep clients informed of developments.

Please contact Dipak Odedra or Lucie Stewart if you would like advice about the legal aspects of buying or selling a home.

 

Posted by: Dipak Odedra
Residential Conveyancing
Berkhamsted Office