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Fri 18 August 2017
The Government has recently unveiled propsals for new leasehold houses to be banned, which oblige the owner of the leasehold property to pay a ground rent to a freeholder.
This has been brought about after some owners of leasehold properties have faced sharp increases in ground rents.
On the subject Communities Minister, Sajid Javid, commented, "Enough is enough. These practices are unjust, unnecessary and need to stop."
Stags agrees with this proposal, as unless the property requires a leasehold ude to it being a flat or an apartment - a quirk of the English legal system relating to positive covenants - "normal" houses or bungalows should have freehold titles.
There are perhaps exceptions to this rule, however, when a landowner wishes to retain more control of an estate. For example, the Duchy of Cornwall generally does not sell on a freehold basis, but instead grants leases of its properties.
If a property owner does own a leasehold property rather than a freehold property, this may well have a bearing on its capital value, depending on the length of the lease remaining.
Stags is well-placed to offer advice on values of both freehold and leasehold proerties; do not hesitate to contact your local office for more information.