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You are here: Home / Latest News / Rebecca Long-Bailey asks Will Astor why Long Harbour is demanding £10,000 to vary toxic doubling ground rent leases

Rebecca Long-Bailey asks Will Astor why Long Harbour is demanding £10,000 to vary toxic doubling ground rent leases

February 12, 2020 //  by Sebastian O'Kelly

Labour leadership contender Rebecca Long-Bailey has written to Will Astor, CEO of £1.8 billion ground rent fund Long Harbour, to ask why it is charging buy-to-let leaseholders with doubling ground rent £10,000 to vary their leases, while giving other leaseholders £750 for solicitors to re-write these toxic leases. Should theses leases have ever been put out into the housing market in the first place?

Sisters need to vary toxic doubling ground rents on three buy-to-let flats

Abacus Land, Long Harbour’s offshore freehold owing company, has demanded £10,000 for each property

Long-Bailey asks: Doesn’t this monetising breach the freeholders’ government-backed fairness “Pledge”?

Labour leadership contender Rebecca Long-Bailey is demanding an explanation from Will Astor, who runs the £1.8 billion Long Harbour fund, why it is charging buy-to-let investors £10,000 to vary leases with toxic doubling ground rents.

Miss Long-Bailey, who used to be a landlord and tenant solicitor with Halliwells, has also questioned whether this monetising does not breach the freeholders’ fairness “Pledge to Leaseholders”, which is backed by the government and appears on its website here:

Public pledge for leaseholders

For existing leaseholders: 1. Identify leases within our portfolio which contain a clause whereby ground rent doubles more frequently than every 20 years, contact leaseholders to inform them, and offer to amend to one linked to RPI. 2.

‘Cameron’s brother-in-law Will Astor and the toxic leasehold scandal’, Daily Mail

Sisters Wendy Verber and Tracy Capal own three buy-to-let investment properties, which are their pensions, at The Quay in Ordsall Lane, Salford, in Miss Long-Bailey’s constituency.

They bought the properties in 2006, but they are unsellable owing to doubling ground rents every ten years.

The freeholder is Guernsey-based Abacus Land 4, a residential freehold-owning entity of the Long Harbour ground rent fund, where the beneficial ownership is hidden behind nominee directors.

Coincidentally, the site is managed for Long Harbour by Landmark Investments, owned by Mark Hawthorn / Hawthornthwaite (he uses both names).

Both Long Harbour and Landmark Investments are signatories of the “Pledge”.

Wendy Verber (right) and sister Tracy Capal face fees of £10,000 for each to vary the doubling ground rents of the three flats that they own at the Quay, Ordsall Lane, in Salford. Other leaseholders are being subsidised £750 by Long |Harbour’s offshore freehold vehicle Abacus Land 4 to do the same. Is the priority of freeholders to remove these toxic leases from the housing market, or to make a turn?

Miss Verber asks: “Why is it that other leaseholders in the block have been given £750 by the freeholder to pay to vary their leases in line with RPI, but my sister and I are looking at a bill of £30,000?

“We are not rich property tycoons. I have had cancer and don’t work, and my sister is a charity volunteer.

“I have managed to find buyers for the flats, but the fact that doubling ground rent is on all three means no mortgage lender will touch them.

“Even if I could pay £30,000, it would leave me in negative equity making my pension money non-existent.

“If there were any profit on these flats, we would have to pay tax to HMRC, whereas these exorbitant fees will be taken to an offshore account by Abacus Land 4.”

The Leasehold Knowledge Partnership was contacted by Miss Verber last November and has twice written to Mr Astor and Mr Hawthorn / Hawthornthwaite, and Crosby Textor, the lobbyists / spokesmen for Long Harbour (which also worked for the Conservative party during the election).

The correspondence was copied to the APPG chairs and patrons of LKP – Sir Peter Bottomley, Justin Madders, Sir Ed Davey – and Communities Secretary Robert Jenrick. But we received no reply.

Hopefully, Miss Long-Bailey will make more progress.

Ground Rent Addicts Anonymous sign Brokenshire’s pledge (three years after the scandal they created and denied existed)

The freeholders’ “Pledge for Leaseholders” is a government-supported initiative, announced by former Communities Secretary James Brokenshire.

Point 1 says freeholders will “Identify leases within our portfolio which contain a clause whereby ground rent doubles more frequently than every 20 years, contact leaseholders to inform them, and offer to amend to one linked to RPI.”

It also has Point 7 saying the freeholders will “Have in place a complaints process that is transparent and fair, ensuring that complaints are heard and dealt with, and redress given quickly.”

When the “Pledge” was announced by the government in March 2018, Richard Silva, executive director of Long Harbour said:

“This pledge is a crucial first step towards positive change in the residential leasehold market and it reflects our commitment to eliminating bad practice from the market.”

Related posts:

Mark Hawthorn rebuked by Long HarbourLong Harbour rebukes Mark Hawthorn, of Landmark Investments, for ‘falling below professional standards’ over email on doubling ground rents Taylor Wimpey and Long Harbour deal to defuse toxic lease scandal … after 11 months! Tory MP Stephen McPartland shames Long Harbour / Adriatic Land into dropping doubling ground rent leases Taylor Wimpey’s snake oil ground rent review scheme makes toxic leases even worse: in my case, £25m worse! Taylor Wimpey CEO says doubling ground rent scandal under ‘review’. But Bottomley asks: ‘Have innocent homebuyers been shafted?’

Category: Latest News, News, William Waldorf AstorTag: Ground rents, Long Harbour, Rebecca Long-Bailey MP, Will Astor, William Waldorf Astor

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Reader Interactions

Comments

  1. Trapped Shared Ownership Leaseholder

    February 12, 2020 at 12:08 pm

    This pledge means nothing. I am trapped with a doubling ground rent originally put in place by Redrow when they constructed my building in 2014. Redrow then sold it on to Long Harbour (its part of the Adriatic portfolio). My housing association have approached Long Harbour via their subsidiary Homeground who want Redrow to compensate them. Redrow are refusing and we are now stuck in limbo, hoping that the upcoming reforms will offer us a way out.

    Redrow, Long Harbour and Homeground all signed the pledge yet without it being legally binding it is worthless.

    • Dave

      March 13, 2020 at 2:04 pm

      I would love to learn more about this particular case.

  2. Matthew

    February 12, 2020 at 7:28 pm

    I was Offered a chance to vary my Lease through Estates and management but turned out because I wasn’t the first buyer of my flat I didn’t qualify under Taylor Wimpey rules . As a result I’m left with the only option they have offered which would be to pay over 20k to vary my Lease!!
    Outrageous and morally wrong.
    I now cannot sell and my flat is worthless with a doubling ground rent clause I never put in place!?

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