One year has passed for Leasehold Scandal and countless consultations have run during the period. But homeowners are still trapped in unsellable properties’ trap. There is a doubt that a new investigation by the Competition and Markets Authority (CMA) could help the homeowners or not. Experts’ investigations into the Leasehold scandal have cast a light on the entire issues regarding the scandal.
The leaseholders had faced some clauses which mean the annual ground rent doubles every ten years, meaning a bill of a few hundred pounds a year could turn into many thousands of pounds. Most of the leaseholders have told that their developers’ suggested solicitors never informed them of these clauses when they had purchased the property.
Developers are selling off freeholds to third party investment companies without informing the leaseholders. Freeholders are charging excessive permission fees to allow leaseholders to make changes or renovation to their properties.
Many stories regarding the scandal came forward. One of the stories in last year’s investigation was about Andrea Millward who owns a leasehold house in Merseyside. Andrea’s lease is also a subject where the ground rent will double every ten years, which means the original annual charge of £295 will rise to nearly £9,500 over the course of 50 years.
Andrea told that she was mis-sold the property when Taylor Wimpey sold her freehold to a third party without informing her. It was illegal to sell the property with a doubling clause and even at a lower price.