The taxpayer subsidy for offshore speculators in residential freeholds has been revealed in the Daily Mail: it estimates that 17,000 leasehold properties have been bought through the Help To Buy scheme.
Shadow Housing Secretary John Healey uncovered the official figures showing Help to Buy had been used to purchase 17,586 houses leasehold since 2013.
Mr Healey told MailOnline: ‘Craven Ministers are not only continuing to let developers sell home-owners rip-off leasehold houses, they’re subsidising this practice through Help to Buy.
‘Across the country, the leasehold scam means people buy their home but find they don’t really own it.
‘They are being fleeced by unfair leasehold contracts, which mean they have to ask and pay freeholders for permission to own a pet, change their carpets or build a conservatory.
‘Ministers should put an immediate stop to Help to Buy cash funding the building of new leasehold houses, and act to tackle the wider pressures leaseholders face.’
The ultimate beneficial owners of these freeholds are hidden by most of the ground rent funds, such as Long Harbour, Wallace and E and J Capital Partners.
The first two told the Communities Select Committee that the ground rent, reversionary values and development potential lie with the freehold investor, while the funds itself are rewarded by the more questionable consent fee income: ie £80 to keep a cat etc …
This point was emphasised by the Leasehold Knowledge Partnership to the Communities Select Committee today:
Homebuyers being urged to snub ‘voluntary’ deals offered by property giants Critics say the deals tie ground rent charges to an outdated measure of inflation Some could still mean owners have to pay to make changes to their property Homebuyers stuck with rip-off leasehold charges are being urged to snub new deals offered by property giants – over fears they include costly pitfalls.
Furious backlash over practice of selling new houses under leasehold terms Figures show more than 17,000 have been purchased using ‘Help to Buy’ scheme Shadow housing secretary John Healey says ministers ‘subsidising’ unfair deals A government housing scheme has been used to fund thousands of purchases of ‘rip off’ leasehold properties, it was revealed today.
Homeowners brought to their knees by rotten leasehold deals must think twice before signing any settlement offer, no matter how desperate they are. Alarm bells should be ringing. Often, the only deal offered has been brokered by the very same money-grabbing companies that ripped them off the first place.