Questions must now be asked of housebuilders playing the leasehold game by building leasehold houses wherever possible in preference to freehold.
Some of the country’s biggest housebuilders – such as Persimmon and Bellway – are involved in the racket.
Politicians supposedly concerned with issues of leasehold should be questioning this matter.
Indeed, Persimmon should be under further scrutiny for holding its freeholds in offshore companies – the easier to flog off to anonymous entities and avoid the leaseholders’ right of first refusal.
Earlier this month Daily Mail financial reporter Ruth Lythe told how families in Cramlington, in Northumberland, now cannot sell their houses as their leases fall below 80 years.
£13,000 fees are required to extend the leases from the freeholders, Bellway and Persimmon.
It would be the property industry’s dream to have every new home in the country built as leasehold.
And let’s not forget retirement housebuilders such as McCarthy and Stone with their 125-year leases … which they know pensioners do not extend and therefore boost the freehold’s value.
Personal finance commentator Sam Dunn writes that leasehold is ‘a lucrative way to stop people from buying their own home outright’.
He continues:
“Over the past few years, campaign groups have sprung up to try to fight for better rights for leaseholders.
They include Leasehold Knowledge Partnership, the Campaign Against Retirement Leasehold Exploitation and – more radically – the Campaign for the Abolition of Residential Leasehold.“But our postbag continues to overflow with letters from leaseholders telling of terrible struggles with indifferent landlords. Incredibly, many new homes today are still being built in this way.
“In May, we revealed how thousands of houses – many of which are being targeted at first-time buyers – are being sold as leasehold by property firms. “And the numbers are rising, too.
“Investment companies are driving huge demand for these types of homes as they have seen it as a way to make a profit from the annual rents the buyers are made to pay. With so much at stake, I’d argue it’s time for a major review of leaseholds and their long-term impact on households …
“Given the heady mix of property ownership, house prices and matters of wealth involved, perhaps the Government would like to take up the cudgels.”
Related posts:
Contact Campaign against retirement leasehold exploitation before buying a leasehold retirement flat, says Daily Mail
Retirement leasehold is a dud property investment, says Mail on Sunday
Campaign against retirement leasehold exploitation campaign reported in Mail on Sunday
Sunday Times covers retirement leasehold … and wants to hear from you
Have a look at the Leasehold Advisory Service website. There is a calculator which enables one to work out the cost of extending a lease. It is an eye opener and shows what a racket this is. Particularly when selling new homes to desperate young families who are under the impression that what they are buying is theirs.
Another lucrative way that Peverel Group was earning money from residents was to allow Management Fees to be used to produce a Magazine, Life & Style where we paid for the publication?
Life & Style Magazine
Peverel began issuing this money spinning magazine in 2010/11 as a business opportunity, and to-date has produced 14 issues over that period. There were three issues a year for the first four years and now two per year in 2015. We were informed that the magazine reflected life at Peverel Retirement Developments. The magazine was used to portray happy residents enjoying their surroundings. Of course by then The Price Fixing Scams were known and this would help paint a good picture of life at a Peverel Development? What Peverel Retirement were really doing was using our Management Fees to produce these issues, where the advertising costs paid, went into the pockets of the Peverel Group, who then returned some of this money to the 65 Developments they cheated out of £1.4 million pounds.
We as residents paid for the publication received nothing, but poor management and duplication of costs that we had already paid in the Management Fees we paid some £12,000 a year. So for 5 years all residents subsidised a magazine which The Peverel Group profited not only financially but also advertised a side of Peverel Retirement, they wanted you to see?
This Magazine Life & Style Spring 2015 has 14 full pages and 8 half pages of advertising not Peverel related.
Advertising Revenue paid to Peverel Group.
A full page of advertising costs £1,200 and half page £800.
•Therefore 14 full pages @ £1,200 = £16,800
•Therefore 8 half pages @ £800 = £6,400
One magazine was worth £23,200 to The Peverel Group, and there was 3 per year up to 2015.
•In one year advertising would have been worth circa £69,600.00?
•The previous years if the same advertising pages, then 4 times £69,600 = £278,400.00
•If two Life & Style in 2015 then 2 times £23,200 = £46,400.00Life & Style Magazine
Peverel began issuing this money spinning magazine in 2010/11 as a business opportunity, and to-date has produced 14 issues over that period. There were three issues a year for the first four years and now two per year in 2015. We were informed that the magazine reflected life at Peverel Retirement Developments. The magazine was used to portray happy residents enjoying their surroundings. Of course by then The Price Fixing Scams were known and this would help paint a good picture of life at a Peverel Development? What Peverel Retirement were really doing was using our Management Fees to produce these issues, where the advertising costs paid, went into the pockets of the Peverel Group, who then returned some of this money to the 65 Developments they cheated out of £1.4 million pounds.
We as residents paid for the publication received nothing, but poor management and duplication of costs that we had already paid in the Management Fees we paid some £12,000 a year. So for 5 years all residents subsidised a magazine which The Peverel Group profited not only financially but also advertised a side of Peverel Retirement, they wanted you to see?
This Magazine Life & Style Spring 2015 has 14 full pages and 8 half pages of advertising not Peverel related.
Advertising Revenue paid to Peverel Group.
A full page of advertising costs £1,200 and half page £800.
•Therefore 14 full pages @ £1,200 = £16,800
•Therefore 8 half pages @ £800 = £6,400
One magazine was worth £23,200 to The Peverel Group, and there was 3 per year up to 2015.
•In one year advertising would have been worth circa £69,600.00?
•The previous years if the same advertising pages, then 4 times £69,600 = £278,400
•If two Life & Style in 2015 then 2 times £23,200 = £46,400.
•Total £324,800.00 may have been the advertising fees received by The Peverel Group?
I asked our Area Manager in an email why were we contributing to the Life Style Magazine he replied that it was in the Blue Book and included in the Management Fee we paid, I asked for a copy of the Blue Book, which has now been sent to me by a friend of Ashbrook Court. The Area Manager did not provided a copy and later denied that the publication of the magazine was included in the Management Fee? This has been typical of the 7 years since 2008/09 where he say something one day and deny the next.
•Total £324,800.00 may have been the advertising fees received by The Peverel Group over the period?
Just found out that Peverel as was, has prevented the ex freeholder from building the promised new office which would have released the House Managers Flat for sale at £120,000. The change of name from Peverel Retirement to Firstport Retirement has prevented the ex freeholders from starting and the time provided has lapsed, which now leaves the HMF with Pev/Port and they can now sell the flat and the HM can work from home?
Painters moved in earlier this to decorate the living room which is used as the office. Cleaners arrived to day to clean the carpets as the HM who was sacked in 2013 leaving the RHMF in a condition which so far has cost us hundreds of pounds in cleaning costs.
The office which was to be built is now in mothballs, waiting for Firstport to sell the flat on the open market even though the HMF is part of the development?
Further from the Blue Book it also shows that we residents also paid for the Welcome Pack out of Management Fees. Peverel/Firstport then charged again some £300.00 plus, when the flat is sold?
Is this not another hidden Exit Fee?
Can any other poster on Campaign against retirement leasehold exploitation explain why this has been allowed to continue as the OFT investigated the company over the Price Fixing?
Sebastian how can we challenge this with your assistants?
Sebastian has something happened to LKP I am unable to post for over 4 days, please help.
Sebastian are you able to help us at Ashbrook Court???
Chas, please give more details about the double charges.