June 02

Leases leave homes unsellable

JMD Law warns of “toxic leaseholds” that leave owners stuck with property that buyers cannot secure mortgages on as banks deem the leases too short or ground rents too high.

Bernard Clarke, of the Council of Mortgage Lenders, said: “Some leaseholders are now seeing rapidly rising ground rents. This is a concern for lenders as it could affect both mortgage affordability and future prospects for selling the property - reports of an increasing number of leasehold houses are another concern.” Figures from the Department for Communities and Local Government show 4m private homes in England are leasehold.

Categories: Residential Conveyancing

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