We would like to appeal to housebuilder whistleblowers to step forward, who were either employed in the past – or are still employed – by developers caught up in the onerous ground rent scandal.
We wish to unravel: how onerous ground rent terms became policy among major housebuilders, and the origins of the industry-wide enthusiasm for creating leasehold houses.
We want to know how freehold owning companies have been set up and their ownership transferred to anonymous investors, to avoid offering the right of first refusal to leaseholders.
We want to know who the freehold investors are, and whether they are offshore.
The business model of the Dukes of Westminster began 300 years ago; we do not need any more rentier dukes created in this day and age.
Would you choose a good night out, or 500 freehold acres of Mayfair and Belgravia?
There must be executives in these house-building companies who knew that these policies were a disaster-in-the-making.
Taylor Wimpey’s doubling ground rents between 2007 and 2011 were bound to come home to roost.
At one recent meeting, a veteran executive of a housebuilder was appalled by this practice before it began in 2007. S/he was reassured that it would not come into force.
Whistleblowers are also very welcome from the freehold investment companies that have hoovered up these dubious assets. We appreciate that might be a bit ambitious.
Whistleblowers can approach Sebastian O’Kelly, a former national newspaper journalist.
07808 328 230
“Anyone who wants to step forward can do so in the sure knowledge that their anonymity will be protected,” said Mr O’Kelly.
“In spite of considerable contrary evidence, journalism at its best is a very serious occupation and is frequently the only means to hold power to account.”
Alternatively, whistleblowers can contact our patrons Sir Peter Bottomley MP or Jim Fitzpatrick MP directly (but please alert us at LKP, because their email addresses are even more deluged than ours.
As there is an All Party Parliamentary Group meeting on April 19, now is the ideal time to come forward to have these issues raised.
Housebuilders and exploitative freehold investors are on the back foot as at last this foetid corner of the residential property market comes under the spotlight.
Government is taking about “feudal” abuses; questions are being asked whether Help To Buy should not be renamed “help to invest”; the prime minister cannot understand why houses are being built leasehold; MPs are asking questions; some are naming names.
A housing crisis – and quite possibly a pension crisis, too – is brewing as a result of developers and leasehold gameplayers attempting to turn a generation of homeowners in England and Wales into long-term tenants. That is, leaseholders.
The next All Party Parliamentary Group meeting on leasehold reform is scheduled for April 19. The one on March 22 had to be cancelled at the last minute owing to the Westminster attack.
If you work in the housing business, and deplore the systematic wealth erosion that the sector has unleashed, then please step forward and get in touch.
Related posts:
Retirement housebuilder hands £7m of freeholds to the leaseholders
Daily Mail turns up the heat on ‘fat cat’ housebuilder bosses
Government to ‘take forward’ CMA leasehold report, but rejects making right to manage easier
Whistleblowers to Serious Fraud Office ‘wasting their time’
Moskovitz forfeits £400k Camden flat from 24-year-old woman ‘whose brother did not forward correspondence for two years’
Ask Louie Burns: The leasehold houses scandal and what you can do about it
Hi. You have asked for builder details. I know of an associated matter, namely that the Nationwide routinely were required in its mortgage instructions to valuers to indicate whether onerous lease terms were known to them from the application form, e.g. Rising ground rents. This was dropped in the noughties. Valuers were still required to ascertain if there were such provisions. Legal advisers to the lenders were required to refer back to the valuers any onerous terms such as this to ascertain if the valuation was affected. This did occur but appears to have stopped since valuations would have been affected and sales fallen through. There appears to have been massive short circuiting on a wide scale and you need to find out from the Law Society and RICS what happened, the major 3 or 4 valuer firms too.
Thanks, excellent points in my opinion
I raised the matter of building societies/mortgage lenders having a responsibility in this matter in another article a few weeks ago.
Its time that CEOs of these lenders were asked what procedures they have, if any, to stop money being loaned on onerous leases. Who, and why, allowed loans on leases like Taylor Wimpeys that doubled in such short time.
Why are building societies lending on any leasehold house when there is no reason for leasehold houses.
Why are building societies not protecting “their customers” , the leasees, or, are they in it together with the builders.
It is time leading building societies spoke up and clarified some very serious concerns.
By allowing such loans on onerous leases building societies carry a lot of responsibility of ruining many of their borrowers lives.