Wainhomes are still selling houses as leasehold however they will give 'freehold' included if demanded at reservation. However the 'freehold' is fleecehold. (Fleecehold is defined as any property purported as freehold but contains toxic covenant generating fees. The aim is to fleece homeowners!).
Many so called 'freehold' properties require permission with unlimited 'admin' fees from management companies for all sorts of ridiculous things from putting up a sky dish to selling the house.
Also many developments are now sold on to investment companies rather than adopted by the council, so buyers are responsible for the financial cost and upkeep of sewerage pumps, roads and 'green spaces' etc (estate service charges), again with unlimited financial clauses decided by the management companies which doesn't have to reflect the true cost.
For us, the most onerous covenant on our dream house was the potential 5% annual increase on the estate service charges. Therefore what would be a relatively reasonable initial couple hundred pounds per year will turn into £20,000 per year in 100 years!!! This means it is not inflation linked. (Obviously this wouldn't directly affect us but would have a considerable negative effect on the resale).
Buyers are essentially signing a dotted line to allow companies to demand a never ending and unlimited amount of money. Don't let anyone tell you money generating covenants are ok because they are the norm (they're not) and protect you (they don't). People buy new builds in good faith however that is no longer wise. Buyers beware!
The National Leasehold Campaign and homeownersrights have a wealth of advice and real life horror stories.
Many so called 'freehold' properties require permission with unlimited 'admin' fees from management companies for all sorts of ridiculous things from putting up a sky dish to selling the house.
Also many developments are now sold on to investment companies rather than adopted by the council, so buyers are responsible for the financial cost and upkeep of sewerage pumps, roads and 'green spaces' etc (estate service charges), again with unlimited financial clauses decided by the management companies which doesn't have to reflect the true cost.
For us, the most onerous covenant on our dream house was the potential 5% annual increase on the estate service charges. Therefore what would be a relatively reasonable initial couple hundred pounds per year will turn into £20,000 per year in 100 years!!! This means it is not inflation linked. (Obviously this wouldn't directly affect us but would have a considerable negative effect on the resale).
Buyers are essentially signing a dotted line to allow companies to demand a never ending and unlimited amount of money. Don't let anyone tell you money generating covenants are ok because they are the norm (they're not) and protect you (they don't). People buy new builds in good faith however that is no longer wise. Buyers beware!
The National Leasehold Campaign and homeownersrights have a wealth of advice and real life horror stories.
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