The Leasehold Trap Affecting Thousands of Homeowners

When it comes to buying a home, most people know how much they will need to pay in order to own the property outright. But thousands of families across England and Wales are now discovering the houses they bought are not all they seemed.

Katie Kendrick bought her Ellesmere Port home from Bellway three years ago, for £214,000.

Katie knew the house was leasehold, meaning she owned the property for the length of her lease agreement, but claims she was told by the sales representative that because of the long length of the lease, it was "as good as freehold."

She was told she would be able to buy the freehold after two years, believing it would cost between £2,000 and £4,000.

But a year later she received a letter from Bellway saying the freehold had been sold to an investment company which was now quoting £13,300 for her to buy it.

The practice of selling a new home as leasehold and then selling the freehold to an investment company without telling the family living in the property is currently not illegal.

Beth Rudolf, from the Conveyancing Association, said:

"Anyone marketing a property is covered by consumer unfair trading regulations, which means that if there is anything that would affect their decision-making process, then they should be advised of that before viewing the property."

If you are facing any kind of property dispute or boundary disagreement, our solicitors are ready to help. Call our team on 01606 834 824 to discuss your circumstances.

Blain Boland

Property Dispute Solicitors