Property specialist Liz Brady, a Partner at leading South East law firm Furley Page, is welcoming the government’s move to ban the practice of selling new build homes leasehold rather than freehold.
The practice of levying “peppercorn” ground rents has been common for centuries but recent practice has seen some developers increasing them considerably over the period of the lease.
Communities secretary, Sajid Javid, has announced today (Tuesday July 25) that builders will be banned from selling houses as leasehold in England.
Liz welcomed the decision but urged the government to consider those already carrying the financial burden of a leasehold property.
“We are pleased to see the government responding to this issue by banning leasehold house ground rents in future developments.
“However, there are 1.2 million existing leaseholders and we urge ministers to assist them as well. Some of them have ground rents in long leases which double, say, every five years, and that can make it almost impossible for them to sell their house in future.”
The ban on selling future developments as leasehold is expected to be introduced following an eight-week consultation. Flats can continue to be sold as leasehold but ground rents will be restricted.
Liz Brady has extensive experience of advising clients on a range of property transactions and is a member of the Commercial Real Estate Legal Association and the Kent Law Society.
For more information and advice on property issues contact Liz Brady by email at email@example.com call 01227 763939.
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