Home ownership is changing.............. the future is commonhold........
and we are very different to Leasehold.
These apartments are within a commonhold development which means each of the owners has freehold title to their apartment whilst jointly owning the building and the land it sits on with the other owners. This gives our buyers real control of their costs and without having to pay annual ground rents etc. It is designed to replace Leasehold, and protect an investment against future devaluations that Leasehold properties may subsequently experience.
Commonhold ownership, although initially more expensive, has been designed by The Law Commission to provide apartment owners with true ownership and control of future associated costs, new recommendations have been released. In doing this the traditional Leasehold has also had to be legally defined and new guidance published. More about Commonhold….
We don't .....
Most other apartments and recently even houses have been sold leasehold, the buyers not owning the land but merely having the right to live there.
Builders and Estate Agents often forget to advise you:-
Annual fees (Ground rents) are paid every January to the investor freeholder who retains ownership of the land and often also the building. Ohhh! and did they tell you:- The investor freeholder therefore often controls the costs and accounts, ground rent, management fees, commissions, building insurances, directors indemnities, annual maintenance, savings account, permission fees and even contribution to a reserve fund you have to pay annually. …………………. And by the way you only buy or mortgage the lease, not the property, and are a tenant.
Sometimes this monetary demand extends beyond your residential curtilage, and you have to pay maintenance and insurance contributions towards unadopted green areas, and roads and drainage schemes, adjoining woods and even play areas. These are sold to the public as a benefit but are actually an open demand upon the unfortunate leaseholders. And the freeholders are going to make money out of it.
Salesperson “There’s just a small £100 contribution to mowing the lawns” The start of many leaseholders nightmares as costs escalate and it can become more than the mortgage. Unfortunately you have little recourse, with-holding payments when demanded can result in your home being taken back without any compensation. The current law doesn’t allow judges any discretion.
Changes are afoot, the government are willing, discussing – but when? It would be a brave buyer to buy a leasehold home at the moment when the shift is towards Freehold within a commonhold development.
Latest Sir Peter Bottomley, Chairman of the Parliamentary Group for Leasehold Reform advised the Parliamentary committee he has just converted his own apartments to commonhold. More …..
Leasehold has simply been re-categorised as a “long residential tenancy”. – With all the fees and charges rental doesn’t have.
There are a lot of problems as major house builders have abused what was previously generally accepted as a fair type of ownership.
There are many misconceptions about leasehold homes. One commonly being “I own the property but just rent the land”. Buyers should be concerned how the market has started to change, Leasehold houses and apartments are expected to devalue in line with tenancy agreements, mortgages become restricted. Buyer beware ……. more …….
Within the last few months building societies and banks have been tightening their lending criteria as they see the future potential drop in leasehold values, both apartments and homes. Some homes in the future will be unmortgageable and therefore un-sellable.
The government has just banned leasehold on new homes and The Law Commission is expected to recommend and ban Leasehold on new build apartments, they are recommending apartments are sold freehold within a commonhold development. Thats US!
At the end of the leasehold agreement the lease terminates. Its similar to leasing a car. Properties with less than 100 years lease become increasingly hard to sell as mortgages are hard to obtain, especially below 80 years. Prices therefore plummet.
That’s why we, unlike other builders, only offer freehold sales. In fact we are, one of the pioneers, the only builder in England currently offering freehold apartments. Setting standards for future generations to benefit from – and quoted in The Law Commission guide published last December.