Leaseholders left in the dark

Homeowners who buy leasehold new build properties, hoping to buy the freehold later may be in for a shock, says Sarah Moore.

832-prop-1200

They won't be happy once they check the terms
(Image credit: sturti)

Homeowners who buy leasehold new-build properties are facing unexpectedly high bills when they later try to buy the freehold. Under current rules, a leaseholder has a right to buy out their freehold after two years. However, during this time the original freeholder (often the developer) can still sell it on and is under no obligation to tell the leaseholder before or after this has happened. So some owners who decide to buy their freehold find that it has been sold on to an investment firm without their knowledge and the price demanded is now out of their budget.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.