The Government has recently announced plans to ban developers selling new-build houses as leaseholds (rather than freeholds) where this is unnecessary (i.e. where there are no communal facilities to administer).
The announcement comes amid much controversy surrounding private ‘management companies’ that purchase freeholds from developers and then sting homeowners with huge and unjustifiable fees. In addition to rapidly escalating ground rent, fees are often demanded for providing consent in relation to the property. Depending upon the lease provisions, consent may be required to build a conservatory, re-mortgage, or even just to keep a pet.
Leasehold properties accounted for 43% of all new-build registrations in England & Wales in 2015, compared with 22% 10 years earlier.
If you are thinking of buying a new-build leasehold property, or any property, ensure that you take legal advice from an experienced property solicitor. Please contact our specialist property team today on 01267 237 441.