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| Plans to ban leaseholds on new-build homes in England | Plans to ban leaseholds on new-build homes in England |
| (about 2 hours later) | |
| "Unfair charges" levied on buyers of new-build homes could be banned in England under a proposed crackdown. | "Unfair charges" levied on buyers of new-build homes could be banned in England under a proposed crackdown. |
| Leaseholds on new-builds would be outlawed, while ground rents could be dramatically reduced, under government plans subject to public consultation. | |
| Ground rents can double every decade, crippling home owners and in some cases making a property impossible to sell. | Ground rents can double every decade, crippling home owners and in some cases making a property impossible to sell. |
| "Enough is enough. These practices are unjust, unnecessary and need to stop," said Communities secretary Sajid Javid. | "Enough is enough. These practices are unjust, unnecessary and need to stop," said Communities secretary Sajid Javid. |
| The proposals, which are subject to an eight-week consultation, apply only to England. | The proposals, which are subject to an eight-week consultation, apply only to England. |
| Builder sorry in leasehold 'scandal' | Builder sorry in leasehold 'scandal' |
| The new property trap affecting thousands | The new property trap affecting thousands |
| Four million leaseholders 'face rip-off' | Four million leaseholders 'face rip-off' |
| The leasehold system has existed for a long time in England and Wales, especially in blocks of flats. | The leasehold system has existed for a long time in England and Wales, especially in blocks of flats. |
| Leaseholders own their homes for a fixed period of time, on a "lease" to a freeholder, but many have long leases, for example for many decades, and experience no problems. | Leaseholders own their homes for a fixed period of time, on a "lease" to a freeholder, but many have long leases, for example for many decades, and experience no problems. |
| Traditionally houses have nearly always been sold as freehold properties, meaning the buyer owns the building and land it is built on outright. | Traditionally houses have nearly always been sold as freehold properties, meaning the buyer owns the building and land it is built on outright. |
| But the trend for new-build houses being sold as leasehold has accelerated in recent years. | But the trend for new-build houses being sold as leasehold has accelerated in recent years. |
| The government said it was a particular problem in the north-west of England. | The government said it was a particular problem in the north-west of England. |
| Leaseholders typically pay ground rent to the freeholder, but can be caught out by clauses allowing for dramatic increases in these fees, which come on top of management charges for the upkeep of communal areas. | Leaseholders typically pay ground rent to the freeholder, but can be caught out by clauses allowing for dramatic increases in these fees, which come on top of management charges for the upkeep of communal areas. |
| The Department for Communities and Local Government (DCLG) said the terms of some leases "were becoming increasingly onerous". | The Department for Communities and Local Government (DCLG) said the terms of some leases "were becoming increasingly onerous". |
| It cited examples of: | It cited examples of: |
| MPs have described the situation as a "national scandal" and the "PPI of the housebuilding industry". | MPs have described the situation as a "national scandal" and the "PPI of the housebuilding industry". |
| The DCLG said its proposals aimed to make future leases fairer by reducing ground rents so they "relate to real costs incurred". | The DCLG said its proposals aimed to make future leases fairer by reducing ground rents so they "relate to real costs incurred". |
| About 21% of private housing in England is owned by leaseholders, with 30% of those properties houses rather than flats, according to figures from the Department for Communities and Local Government. | About 21% of private housing in England is owned by leaseholders, with 30% of those properties houses rather than flats, according to figures from the Department for Communities and Local Government. |
| What is a leasehold? | What is a leasehold? |
| Source: The Money Advice Service | Source: The Money Advice Service |