You are here: Home - Mortgages - First Time Buyer - News -

Labour outlines plans to reform ‘broken’ leasehold system

0
Written by: Marc Shoffman
09/07/2019
Labour has unveiled leasehold reform proposals that would go further than current government measures.

A report, titled Ending The Scandal, Labour’s New Deal For Leaseholders, proposes a ban on the sale of new leasehold houses and flats.

It also proposes that if in government, Labour would make leaseholders able to purchase their full freehold for a maximum of one per cent of the property value.

Ground rents on existing leaseholds would also be capped at 0.1 per cent of the property value, up to a maximum of £250 a year.

This would go further than the current government reforms, which only propose banning the sale of leasehold houses and the only measure for existing leaseholders is that ground rents on renewed leases would revert to zero.

John Healey, shadow housing secretary, said: “Leasehold is a symbol of our broken housing system, with millions of England’s homeowners feeling like they’ve bought their home but still don’t own it.

“The scale of the problems faced by leaseholders, from rip-off ground rents, to punitive fees to onerous contract conditions stating what they can and can’t do to their own homes demands wholesale change. We need a revolution in rights for leaseholders.

“This consultation document sets out the next Labour Government’s ambition end the broken leasehold model for good.”

Activists from the National Leasehold Campaign have backed the proposals, claiming Labour has “upped the stakes in the competition for votes of the millions of existing leaseholders.

To find out more information about second mortgages, please click here

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
fund managers
UK investors ditch active funds amid Woodford crisis

UK investors have pulled record amounts of money from actively managed funds amid the spectacular downfall of star stock-picker Neil...

Close