The scandal of house builders dumping their clients in leasehold houses was aired on the BBCR2 Jeremy Vine Show on Tuesday.
These leases are designed to produce high income streams at the expense of ordinary home owners and are then the freeholds are flogged to speculators.
Routinely, these hide their beneficial ownership behind nominee directors and are based offshore, the Jeremy Vine Show was told.
The programme featured Katie Kendrick, of the National Leasehold Campaign, and then a debate between Sebastian O’Kelly, of the Leasehold Knowledge Partnership, and James Max, a chartered surveyor and former contestant in The Apprentice.
Mr Max is now a property pundit, with a show on Talk Radio.
Mr O’Kelly referenced Elan Homes offering to sell a freehold to a leasehold house in Liverpool for £7,500 – 30 times the £250pa ground rent – and then selling it to a speculator who three months later wanted more than 63 times annual ground rent.
The item on the Jeremy Vine Show was extensively referenced on Twitter.
The show can be heard here
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Katie, Check out About Firstport Website for more support.
Having listened to the programme it shows again Leasehold Exploitation occurs when Governments fail to correctly legislate, possible colluding with PLC Builders?
How long can the Housing Ministers fail to see what is happening and what has already happened?
I purchased a flat lease in 2006, which was built in 1986/87 and was originally for 99 years. Now after 33 years the Ground rent doubles from £48 to £96 which we were aware of. The date of the sale on my lease is 29 December 1987. It states the first 33 years will be at the same rate. The first 33 years from the date on my lease takes us up to 29/12/2020.
I have been sent a bill for £7.89 to cover from 26/04/1986 to 26/06/86 and have contacted E&M who couldn’t explain the amount.
The Agent for the Freeholder is Estates & Management and Firstport Retirement are the Managing Agent. We want to extend the lease for another 90 years and the Freeholder is MB Freeholds and Landmark are their agents?
So technically when you “purchased” the lease, it was an impaired lease in that money (the £7.89) was still owed.
As such the lease need repairing, which can be done in two ways.
You can either pay the £7.89., or the freeholder can drop the claim?
However, what is not generally known is that if the freeholder has ever sent a ground rent demand without requesting the £7.89 then by doing so the freeholder has repaired the lease.
They have waived all their legal rights to collect this money.
Given that other than two directors E&M have no employees.it comes as no surprise no one at E&M can clarify their position?
Neither you, nor any fellow residents have any need to pay this amount.
Chas also highlights an issue that is much misunderstood.
Namely at what point a lease starts?
It is not when a lease is signed by either a landlord or leaseholder.
It is when the lease was created.
Even a new build can have a lease created before the first brick is laid.
So moving into a brand new property, the lease can be three years old!
And if you have a ground rent stipulation that increases by doubling or RPI every 10 years, the leaseholder is only 7 years away from a substantial increase.
Michael, thank you for the information, from what you have posted, I checked the original leases I managed to get copies of.
The Head Lease was Signed 25/12/1985 between:
* Mercian Homes (Head Lessor) & Spiral Housing (The Association)
Then a Lease was signed 27/02/1987 between:
* Mercian Homes (Head lessor) & Meridian Retirement (Lessor) and Managing Agent
Then an Underlease was signed 31/12/1987 between:
* Mercian Homes & Meridian Retirement (MA) & Mrs Rea (Lessee)
The Underlease granted 99 years to the Lessee on 31 December 1987. It also states in the lease for the first 33 years the GR will remain the same. How can this ever be, when a date is mentioned 10 months before the lease is signed, between the Head Lessor and the Lessor and 20 months before the lease was signed between the Head Lessor – Lessor – Lesse.
Is this another Scam, being played out by the Landlords (Lessors) Agent, Estates & Management, who have refused to provide in writing, an explanation of how the dates and terms do not conform correctly.
How can a lease be signed before a Brick is Laid and then used as the commencement date for a 99-year or any other term of a lease?
As I said,the lease begins when it is created. That can be from the moment the land is purchased by the developer. Any subsequent granting of the lease is not always the start date?