10.6 C
Saturday, June 15, 2024

‘Re-think leases’ warning to housebuilders

A commercial property expert is warning housebuilders to take a look at their leases following news that the sale of new-build leasehold homes could be banned.

The Government’s Communities Secretary, Sajid Javid, has announced an eight-week consultation into the proposals, which could potentially ban the payment of ground rents on new homes.

In light of the potential ban on ground rents for new leasehold homes, it is advised that housebuilders should consider obtaining a CML certificate to ensure compliance with the Council of Mortgage Lenders’ recommendations on lease information availability, emphasizing the importance of early legal advice.

But Martin Beardsworth, Commercial Property partner at regional law firm Napthens, warned that while such plans could help homeowners in the future, it is also important for buyers to understand the current system and how leasehold works.

He said: “This is major news that could change the way properties are owned by many people.

“This comes after industry concerns that some house owners may not fully understand the terms of their new house leases, and onerous lease terms could affect the value of their property and/or cause mortgage lenders to revoke their initial mortgage offers.

“There is no doubt that the leasehold system can be complex which is why it is so important to take legal advice early on.

“For instance, the Council of Mortgage Lenders (CML) suggests that lease information should be made available for new homes as early in the purchase process as possible so advisers can help purchasers make appropriate decisions.

“Lenders will also expect professional advisers to consider the length of the initial lease term, the initial ground rent figure, how this rent is reviewed and other fees charged under the lease.

“Until the consultation runs its course and the Government takes a decision on how best to move forward, it’s still important that housebuilders take the right advice early on when planning leases for their developments.”



Bespoke named Best Place to Work by The Sunday Times

Chorley-based digital marketing agency Bespoke has been named by the...

Sky Bet Bonus Code 50/1 England to Wear White – Get £50 Free Bets

New customers at Sky Bet this June, ahead of...

US Open: McIlroy and Cantlay share lead after round one

Rory McIlroy and Patrick Cantlay hold a share of...

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

Chief executive to leave Lancashire County Council

The chief executive at Lancashire County Council is moving...

Wimbledon 2024: Djokovic ‘unlikely’ to be fully fit, says surgeon

The surgeon who operated on Novak Djokovic's knee following...

Best UK Football Betting Sites For 2024

Football is the UK's biggest and most popular sport....

Who’s Viewing Your Social Media? An In-Depth Look at Privacy Tools and Settings

Curiosity about who views social media profiles is common....

More News

Lancaster shop worker fined for selling vape to underage girl

A man working in a Lancaster vape shop has been fined £916 for selling a disposable flavoured vape to a teenager without asking for...

One in three businesses in Lancashire fail test knife purchases

Trading Standards revealed that one in three Lancashire businesses failed their test purchases for knife sales. Operation Sceptre, an operation focusing on knife crime, involved...

Five Preston stores fail underage knife sales test

Five out of eight traders in Preston have failed a knives test purchase set up by Trading Standards officers and police. Young volunteers from across...