Estate agents say extortionate charges are blighting the lives of 10% of leaseholders

By Harry Scoffin

As National Leasehold Campaign launches its own survey on mental health, the extraordinary National Association of Estate Agents has come up with another research snippet claiming 1 in 10 leaseholders face blighted lives owing to predatory over-charging.

The article appeared in the Mirror today:

1 in 10 leaseholders say extortionate costs are affecting their quality of life

Leasehold property owners are paying £319 in ground rent costs every year, totalling £447million, figures show. And one in ten say these costs are affecting their quality of life, the report by NAEA Propertymark found.

The results showed up in a survey of 1,000 leaseholders carried out last year, and given a re-airing owing to the Competition and Markets Authority announcing its mis-selling investigation this week.

NAEA Propertymark said freeholders typically charged home owners £1,422 to install double glazing, £887 to change the kitchen units, and £689 to replace the flooring.

Some face bills of £527 for changing their blinds and £411 for installing a new front door.

The National Leasehold Campaign has launched its own survey on the toll of leasehold issues on home owners’ mental health. It closes at midnight on Saturday.

The initiative comes from Katie Kendrick, herself a nurse.

Mark Hayward, chief executive of the NAEA, said:

“Buying a home is one of the biggest financial and emotional investments we make in our lifetime, and once we’ve completed and moved in, we should be able to enjoy the property,” explained Mark Hayward, chief executive, NAEA Propertymark.

“But unfortunately for those buying leasehold houses, the financial burdens continue with ground rent payments to the freehold every year.

“Even though many leasehold contracts include a ‘ten-year ground-rent freeze’, most developers sell the freehold onto a third party within a few years of completion and those terms go out the window, meaning homeowners are faced with unexpected and escalating costs

“It’s positive to see action being taken, with the recent announcement that the CMA will be investigating the mis-selling of leasehold properties, as for too long, housebuilders and developers have not been transparent enough about what it actually means to buy a leasehold property.”