The great leasehold rip off - how firms are cashing in on housebuyers with charges that DOUBLE every decade

The great leasehold rip off – how firms are cashing in on housebuyers with charges that DOUBLE every decade

Although leasehold agreements are theoretically supposed to protect residents from rent increases, they are often abused by home builders to trap residents in houses they cannot sell while prices escalate. These agreements can cause ground rent to grow at rates so fast as to render a home essentially impossible to sell, and can also include ridiculous fees for basic things like pets and small add-ons. These deceptive and exploitative agreements leave angry homeowners feeling duped, pressed for money and trapped in a situation they need to escape.

Key Takeaways:

Double clauses are now being discovered at an alarming rate that shows increased rising in ground rent when homeowners are ready to sell.
One woman found that after not even a decade, her ground rent was going to double in its rate.
Many experts suggest that realtors had absolutely failed to convey the details of the potential ground rent increase before closing the deal.

“Between 2008 and 2058, her ground rent would skyrocket from £295 to £9,440 a year, rendering the property effectively unsellable, with estate agents refusing to market it.”