Leasehold Property Statistics
Of the 5 million leasehold properties bought by British home buyers, only 1.5 million are owner-occupied. However, legally these properties are owned by their freeholder. In 2014, 64% of properties were owned by British home buyers. This includes leasehold homeowners who are not, at least in the eyes of the law, the legal property owners. Once you subtract leasehold British home buyers, the percentage of home ownership decreases to 59%.
As many as 40% of leaseholders are unaware of the length of time remaining on the lease. Of those British home buyers that are aware of the length of time on their lease, almost a quarter (or 370,000 homes) has less than 80 years left to run. The cost of extending these leases is estimated to be £4 billion.
Most British home buyers that have purchased leasehold properties have bought apartments. However, property developers have sold an increasing number of newly-built houses to British home buyers as leasehold - something that was unheard of twenty years ago.
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What the Government Says
In February 2017, Communities Secretary, Sajid Javid made a promise to British home buyers to end the unfair practicewhereby homeowners becomeunable to sell leasehold properties with unfair costs, including ground rent.
A report highlighted the difficulties leasehold British home buyers faced. The exact terms and conditions of the lease are often hidden to homeowners, and they are also unprotected from terms that include huge rises in ground rent.
Labour's housing spokesman John Healey said that the report highlights the difficulties faced by leasehold British home buyers. He argued that a Labour government would stop developers building leasehold properties in new housing developments and educate first-time British home buyers of the full conditions of buying a leasehold property.
Many leading authorities in the property sector have condemned leasehold properties and championed mandatory commonhold tenure for all newly-built apartments. Any extension to existing leases should be 250 years without exception.
Springbok Properties aims to provide a helpful and transparent service to British home buyers. If you'd like to learn more about leasehold or freehold properties, or need to sell your house quick, call us TODAY on: 0800 068 4015.