Leasehold is a licence to print money says Southport councillor

Leasehold is a licence to print money says councillor

A Southport resident’s plan to build a small extension to her modern terrace house has revealed the tangled web of leasehold property which the government has pledged to outlaw.

Victoria Gilliver of Hodson Street has been “ shocked and angered “ by the amount of expensive red tape she has been presented with by the leaseholder’s agents.
Mrs Gilliver contacted Cambridge Ward Councillor Pat Keith, who has led the fight for the sale of leasehold property to be banned.

“ The response from Home Ground, who act for the landlord Abacus Land, purchasers of the freehold from Bellway Homes, exposes the sinister web of leasehold buying and selling and their letter even refers to Mrs Gilliver as a ‘tenant’ rather than the owner,” said Councillor Keith.

“ The letter also refers to a litany of charges but leaves it unclear what she would actually have to pay be to receive permission to build the small addition to her property. I call it ‘her property’ although in the context of the letter she appears anything but the owner, which again emphasises the iniquitous nature of the leasehold system.”

It is clear from Home Ground’s letter that the home owner of a leasehold property is the tenant and the owner of the freehold is the landlord as outlined in this extract: Leasehold ownership is a form of tenancy. We acquired the tenancy on behalf of our client, Abacus Land, in 2014. We have not given a precise quote as we have not received the plans and specifications. If they are in order then the matter is usually dealt with by letter consent rather than full formal licence if it’s by letter then it is will be £300

Councillor Keith said: “In addition to these yet to be disclosed costs Mrs Gilliver has already paid a fee of £108 just for an initial enquiry. Home ground also refer to a licence but make no attempt to explain what on earth this is I can only presume it’s a licence to print money!

“ have carried out research into the dubious practice of leasehold properties and I’m quite certain that if people were told at the offset they would be the tenant not the owner alarm bells would ring. If they were then told that the landlord could appoint agents who would make charges of you wanted to enhance and extend your property I’m sure they would think twice about purchasing.

“I would urge anyone who finds themselves in a similar situation to write to the department of Communities and Local Government so that they can gather evidence and halt this fleesehold debacle.”