A RICS surveyor has urged the promised reform of leasehold property to be fast-tracked.
Andrew Simmonds, who runs Parkers Estate Agents, a branch of which is in Backwell, is urging the reform of leasehold property by the Government, which would boost the property market in the region.
Speaking yesterday, Andrew said: “The Minister (Michael Gove, secretary of state for Levelling Up, Housing and Communities) needs to get on with it as consultation over this matter started over a year ago and it is clear what legislation is needed.
"The West Country has a high proportion of leasehold properties with ground rents and it can be confusing for purchasers.”
Andrew believes ground rent laws for current leasehold homeowners need to now be finalised and promised Government reforms in lease extension and collective freeholds introduced.
Andrew continues: “I would advise anyone looking at a leasehold property to be very cautious on anything under that period. They are at risk of losing value of their property if they live in it for 10 to 20 years. Very few lenders will offer a mortgage on a leasehold property with 80 years or less left on it.
“If you are looking to buy a house or apartment then you need to check if it is freehold or leasehold. If it is freehold then you have total control over the property and there is no time limit on your ownership.
"If it is leasehold there may be limitations on what you can do and you may be required to pay ground rent and service charges.
“Of course, for many people living in apartments it is preferable for them to be leasehold, so that common areas shared with others in the block are dealt with by the freeholder or an agent acting for the freeholder.
“But for many houses the old ground rent system was simply a way that developers made a little bit of extra money.
"It is now very outdated and reforms need to be fast-tracked. It is wrong that 21st century house owners and potential buyers have this complication in this region.
“If the Government go through with their plans then buying and selling a leasehold property in the region will be much easier.”
More information on Parkers Estate Agents can be found on their website.
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