The government has back-tracked on the bar on Help To Buy for commonhold properties and will now allow purchases of this form of tenure, which prevails in the world outside England and Wales.
The news will come as a pleasant surprise for small house builder (and former leaseholder) Stewart Moxon, of Hopton Build.
He trying to selling five two-bedroom apartments at Liversedge, near Huddersfield, as commonhold units rather than leasehold, which he regards as a widely abused form of residential tenure.
But in November was told by the Government’s Help To Buy team, which has doled out £8.3 billion, with more to come – that commonhold properties were ineligible under scheme.
Well, now they are.
Homes England told LKP:
“There are some areas of commonhold such as service charges and insolvency that are unclear and carry financial risks, but these may be resolved in the Law Commission’s commonhold review.
“In the meantime, we will update our solicitor forms to include a legal undertaking requirement to explain the clauses and impact of any commonhold tenure, and for borrowers to declare that they understand the terms of the tenure.”