Schemes like Help To Buy can no longer be used for new leasehold houses.
Government funding schemes will no longer extend to new leasehold houses in an attempt to “tackle unfair and abusive practices within the leasehold system”. James Brokenshire, the Housing and Communities Secretary, has outlined plans for delivering a “fairer, more transparent system for homebuyers”.
Funding schemes, such as Help To Buy, will now contain a clause that stipulates how the money cannot be used to “support the unjustified use of leasehold for new homes”.
The reform to leasehold funding will come into force as the Government are still working on initiatives to redress problems in the leasehold industry. Sajid Javid, the then Housing and Communities Secretary, announced late last year that the Government will introduce new measures concerning the leasehold system.
The measures include: limiting the creation of leasehold estates on new-build houses, ensuring nil ground rents on new long leases, and amending the lease extension and freehold purchase process so that it is “much easier, faster and cheaper.”
Although axing funding schemes will hinder prospective leaseholders from purchasing their home leasehold, the measure obviously does nothing for the leaseholders currently trapped in homes with onerous terms and depreciating leases and onerous terms.
If you need to speak to a leasehold specialist about how this news may affect you, Nick Plotnek Associates can offer you free, preliminary advice.
From: gov.uk
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