Leaseholders say they are ‘cash cows’ as Tory MPs urge Government to honour leasehold manifesto pledge
Michael Gove previously said he wants to reduce all ground rents to a zero rate, which would also give landlords an incentive to sell the freehold to leaseholders.The alternative is extending the lease, which can be prohibitively expensive for many homeowners, and so many homeowners in leasehold properties struggle to sell.
She said a “tiny” amount of pension fund money is invested in ground rents and pension funds have had “plenty of time to make changes to their asset base” because the Government outlined its intention to do this years ago. Bob Blackman, a Conservative MP and member of the Housing Select Committee, said the Government should honour its commitment to voters, describing ground rents as an “unacceptable” investment.: “This has been a rip-off for donkey’s years whereby leaseholders have effectively been charged money for no good reason.”
“The UK cannot continue to have a two-tiered system of home ownership, and we must make sure to use this legislative opportunity to free future generations to full home ownership.” The amount she has to pay the freeholder to extend the lease is linked to how high the ground rent is, which pushes up the cost of doing so.
The ground rent is expected to increase again in 2043 in line with the retail price index of inflation over the next 20 years, which could raise the fee to more than £1,000.
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