On 9 July 2019, BBC Breakfast covered a story about purchasers of new build properties sold on long leasehold.
In many if not all cases of new build properties being sold on a long leasehold basis, the purchaser is placed in a worse position than they would have been had they purchased a similar property on a freehold basis. This is due to a number of factors, some of which are outlined below:
- Buying a property on a leasehold basis means the purchaser has to pay Ground Rent regularly. Furthermore, that Ground Rent may increase substantially depending on the terms of the relevant “Ground Rent” clause.
- A leasehold purchaser may be heavily restricted in adding value to his or her property, by way of an extension for example.
- The sell on value of the leasehold property will be less compared to similar properties sold on a freehold basis.
If the purchaser did not receive appropriate advice about this at the time of purchasing the property, action can be taken against their advisers to recover any loss sustained by the purchaser.
We can assist to recover any losses that you may be owed as a result of the above. We would be happy to hear from you, but please note time limits apply to any claims made on this basis and you should act promptly. Our Professional Negligence department can be contacted on 01924 457171 or you can request a call back and a member of our team will be in contact with you.