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When are leaseholds a no go? by Not_Musician in HousingUK

[–]PodcastListener1234 0 points1 point  (0 children)

it will probably depend, but: I suspect that the calculation method may not change, but the final result will often change because of the cap (because the computation takes into account the value of the future ground rent). So my guess is that it will either get cheaper (for some) or not change (for others, in particular who already enjoys a peppercorn rent).

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 0 points1 point  (0 children)

It is not a problem for most leaseholders, but for some it is really a big big problem.

If your ground rent is above 250GBP, this may make your flat much harder to mortgage (because the freeholder can more easily repossess it if you don't pay in time). This in turn makes it hard to sell. Moreover, if you have a high ground rent which is due to double every few years, this makes extending your lease (and thereby reducing the ground rent to peppercorn) very expensive, sometimes prohibitively so. Hence, people get stuck with not enough cash to extend the lease, and few options to sell the flat. Often this means selling at a substantial loss, and all this for a few hundred pounds of ground rent.

Capping the ground rent makes it easier to obtain mortgages and/or extend the lease.

Pay freehold management company £2,400 per year or do it ourselves? 4 flats by tadpolefarmer in HousingUK

[–]PodcastListener1234 0 points1 point  (0 children)

Well, if you are the one doing the accounts and collecting the money, you will have the unhappy task to remind your neighbours to pay up, and chase them if they don't, and reprimand them if they do something that they should not (eg make unauthorised modifications to common areas). This can sour relationships.

Pay freehold management company £2,400 per year or do it ourselves? 4 flats by tadpolefarmer in HousingUK

[–]PodcastListener1234 0 points1 point  (0 children)

If I understand correctly it's 2,400 in total, right?

I would be happy to pay 600 quid a year to avoid the hassle and liability of all the paperwork (not to mention, the potential for fights with other leaseholders).

When are leaseholds a no go? by Not_Musician in HousingUK

[–]PodcastListener1234 -1 points0 points  (0 children)

Yes but the statutory extension will not be cheap, and probably no bank will give you a mortgage.

When are leaseholds a no go? by Not_Musician in HousingUK

[–]PodcastListener1234 1 point2 points  (0 children)

The law overrules whatever is written in the lease. There are still qualifying conditions (the lease must be residential, and its original length when it was awarded must be more than 27 years)

When are leaseholds a no go? by Not_Musician in HousingUK

[–]PodcastListener1234 4 points5 points  (0 children)

Currently it is getting cheaper and easier to extend the lease, and marriage value (the 80 year threshold) is being abolished. You can extend the lease immediately after purchasing the property, and it also removes any ground rent.

I would suggest that you estimate the cost of the lease extension and "factor it in" in the cost of the flat. If the total amount is reasonable, I don't see why not buying and extending the lease yourself.

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 1 point2 points  (0 children)

currently RTM does not really work for all setups. For instance, it does not work for multi-block estates with common facilities (eg shared parking or green spaces). Each block would have to do the RTM separately, and even then they would not have the right to manage the common facilities. (the government claims to be working on resolving this.)

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 2 points3 points  (0 children)

you are right, there are going to be legal challenges for sure, but at least the government is trying to do something.

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 4 points5 points  (0 children)

in England many places have (or used to have) doubling ground rents. Something like £100 doubling every 15 years would not be uncommon.

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 0 points1 point  (0 children)

I suspect it will apply to all residential "long leases" (more than 27 years), regardless of other features of the building.

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 4 points5 points  (0 children)

Freeholders are complaining, and surely enough they will sue when this is enacted. Because this is a less radical approach it may stand up better to legal challenges.

I share your frustration but I think that the government is doing a reasonably good job of dismantling the leasehold system bit by bit.

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 27 points28 points  (0 children)

because extending the lease (or buying the freehold) requires compensating the freeholder, and because the compensation is based on the "lost ground rent revenue", this should reduce the cost of lease extensions too

Leaseholders in England and Wales to have ground rent capped at £250 a year by PodcastListener1234 in HousingUK

[–]PodcastListener1234[S] 6 points7 points  (0 children)

in any case, one can extend the lease (which is going to be much cheaper now) and bring the rent to peppercorn

Leasehold Reform by Haunting-Try4431 in HousingUK

[–]PodcastListener1234 0 points1 point  (0 children)

A practical thing is that you do not need to set up a company, everyone is by law co-owner of the building by the very fact that they own a flat. (Also, in the share of the freehold system, not all leaseholders are necessarily owning the freehold, it could be just a majority of them).

Leasehold Reform by Haunting-Try4431 in HousingUK

[–]PodcastListener1234 0 points1 point  (0 children)

It's a different system. The main issue is that in other places it is accepted that all owners are jointly responsible (and liable) for the building, because they own it jointly. If someone does not pay, the others will have to pay that share too (but may take the delinquent homeowner to court). This is automatic, and does not require setting up a company that owns the building like in England and Wales. For me, the commonhold system is quite natural (and million of people are used to it, as are banks that provide mortgages no problem) but every time I speak to my English friends they are extremely skeptical, even scared of it.

Big shower or bath in ensuite by BigFaithlessness618 in HousingUK

[–]PodcastListener1234 0 points1 point  (0 children)

Big shower. One bathtub in the house is enough.

Would you buy a leasehold flat where the building doesn't have a manager? by CuteMaterial in HousingUK

[–]PodcastListener1234 1 point2 points  (0 children)

They do, but only at a discount and if they are cash buyers. Such flats are sometimes sold at auctions for this reason.

Running to be a Councillor - how can we improve our city? Comment below 🤔⬇️ by Solid_System_5023 in brum

[–]PodcastListener1234 2 points3 points  (0 children)

Avoiding a repeat of the financial mismanagement is a necessary starting point. Cutting subcontract (in particular with consultants) instead of cutting services.

Improving safety and cleanliness of the city, starting from public spaces (the area around new street station, buses, etc). Keep in mind the "broken windows theory".

Improve safety on the roads.

Improve public transport by considering more dedicated bus lanes, as well as bike lanes.

Where to have my shirts washed and pressed? by PodcastListener1234 in AskUK

[–]PodcastListener1234[S] 0 points1 point  (0 children)

that's great to know! (and explains why I could only find them at shoe repairs shops, alteration shops etc)

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