What Is Happening?
There is good news - a positive march forward - for homeowners who are dealing with their leasehold issues and need assistance. Early post-mid year, 2017, a property developer agreed to buy back a number of freeholds.
What happened, and how? The company which sold much of the leasehold of the houses to a ground rent Company, a firm in the Estate industry, agreed to buy just more than a few back. Since the matter that homeowners seek assistance upon is the angle of the clauses which stipulates that ground rents would double in 10 years.
The ground rent company made a statement stating to homeowners that it was sorry. It shared that it has been working with the Company it bought the leasehold from. The outcome of which is finalized sale of the freeholds to the selling Firm.
In a statement of its own, the company which sold the leasehold to its counterpart company (the ground rent firm) before buying it back, said a thorough review of properties sold on leasehold was carried out. Reached was a conclusion that many of the properties - homes sold - were of no financial risk. If at all, they were quite meager. At the same time, it confirmed that there was a fast increase in the 10-year doubling ground rents of a number of leases. It announced the Firm has made immediate moves to address this.
Some opinions are calling for further adjustments. That more could be done given the extent of the impact of what many may call the leasehold scandal. Household which have been longing for a change are glad. And they are hoping a breakthrough may be on the horizon for them.
What Experts Think
Experts have called for more action on spreading the fresh initiative of fixing the lease matter towards areas yet untouched.
Further Positive Moves Towards Lease Matters
A foremost developer had issued a large sum of money which is a commitment to the lease issue. The sum is included in an assistance scheme targeting homeowners on compensation grounds. Several terms of leaseholds are being re-negotiated with freeholders. This initiative by this top player is novel amongst its counterpart and players.
In a move to furthering the positive outcomes around the leasehold scandal, the UK government in late 2017, after consultation on the future of leasehold, decided that leaseholds should cease. Only for, but not all, new build houses. It will by this move be ensuring ground rents on new long leases are set to zero in England, for both houses and flats. This means it will be easier and cheaper for leaseholders to completely buy out their freeholds.