Breakthrough in leasehold scandal as Countryside buys back freeholds
Hopes of a breakthrough for householders trapped in the leasehold scandal are rising after a major developer agreed to buy back some freeholds and axe controversial ground rent clauses. Countryside Properties, which sold some of the freeholds on its houses to ground rent company E&J Estates, has agreed to buy a number of them back with a view to releasing homeowners from clauses where ground rents double every 10 years.
Countryside Properties plc’s buying back freeholds with 10-year doubling ground rents and offering them to leaseholders puts pressure on Taylor Wimpey to do the same.
The announcement was immediately reported by The Guardian, and the Daily Mail, putting further pressure on Taylor Wimpey to revise its inadequate handling of the issue.
LKP points out that the Countryside Properties plc deal excludes doubling ground rents of every 15 years – which would not be mortgageable by Nationwide and other lenders.
We understand that the deal only involves four-five sites with leasehold houses.
Countryside Properties plc has not yet secured agreement with Adriatic Land to buy back the freehold at Silver Point, in Edmonton, north London. It is a block of flats where ground rents double every ten years, meaning that they are now unsellable.
Adriatic Land is part of the Long Harbour group run by William Waldorf Astor, half brother-in-law of Samantha Cameron.
It has residential freehold assets estimated to be worth around £1.3 billion.
Canadian billionaire Frank Sixt, a telecommunications entrepreneur at Hutchison Whampoa in Hong Kong, was a director until 2014.
Related posts:
Countryside Properties plc deal to buy back freeholds turns spotlight on Taylor Wimpey, BBC told
Countryside Properties plc and Long Harbour to offer deal to end ground rent scam at Silver Point
Guardian reports the Taylor Wimpey £130m offer to settle ground rent scandal
Countryside Properties plc cracks over ground rents scandal …
Taylor Wimpey and Long Harbour deal to defuse toxic lease scandal … after 11 months!
Furious Persimmon leasehold house owners at Harrow View West demand their freeholds
A start but not nearly enough. The article from Christopher Howarth includes some good suggestions – these sort of things need legislation and should not be left down to the philanthropic tendencies of the freeholders or the house builders. Enough with the charity and the goodwill! Are we supposed to ‘doff our caps’ to them like in the good old days?
A start but I take the word ‘breakthrough’ was meant cynically.
There has so far been no mention of the Councils and London Housing Associations which have covertly joined force with developers on regeneration and charge outrageous management fees and of course the double GR.
When is the media going to name these HAs and Councils which are copying the spivs and working with them to grab the dosh. There are deals within deals which the public would be shocked to discover.