Money Box Live: What's going on with leasehold?

Money Box

BBC

Business

4.2 • 804 Ratings

🗓️ 22 May 2024

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

Around 10 million people across the UK live in a leasehold property. That means they viewed the house or flat, bought it, may be paying off a mortgage to eventually own it outright.

However, they are actually tenants of whoever owns the freehold. What they have bought is the right to live in the property for a given amount of time. Sometimes that's for the best part of a thousand years - sometimes it's for much less.

In this episode we hear from leaseholders on what some of the issues are, including ground rent and service charges and what can be done about them. We'll also hear from a charity which relies on leasehold revenues.

It's a system that even ministers have described as feudal - behind the scenes, work continues on the Leasehold and Freehold Reform Bill, which is being examined by members of the House of Lords this week. The Department for Levelling up, Housing and Communities say; “It is not fair that many leaseholders face unregulated ground rents for no guaranteed service in return."

The Residential Freehold Association told us; “The Government’s own report into leaseholder perspectives highlighted that the vast majority of leaseholders are content with the leasehold system."

To answer your comments and questions, Felicity Hannah is joined by Matt Lewis, a Consultant Solicitor at Commonhold and Leasehold Experts Limited and Martin Boyd, chair of the government funded Leasehold Advisory Service and also chair of the Leasehold Knowledge Partnership, which supports and campaigns on behalf of leaseholders.

Presenter: Felicity Hannah Producer: Sarah Rogers/Amber Mehmood Editor: Beatrice Pickup

This episode was first broadcast on the 24th of April 2024

Transcript

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0:00.0	You are about to listen to a BBC podcast and I'd like to tell you a bit about what goes into making one.
0:06.5	I'm Sadata Sese, an assistant commissioner of podcasts for BBC Sounds.
0:11.2	I pull a lot of levers to support a diverse range of podcasts on all sorts of subjects,
0:16.0	relationships, identity, comedy, even one that mixes poetry, music and inner city life.
0:22.4	So one day I'll be helping host develop their ideas, the next fact-checking, a feature,
0:28.3	and the next looking at how a podcast connects with its audience, and maybe that's you.
0:33.6	So if you like this podcast, check out some others on BBC Sounds.
0:39.5	BBC Sounds, music, radio podcasts.
0:43.0	Hello, in this podcast, we're asking how much does leasehold cost you?
0:47.9	And what will planned reforms actually change?
0:51.2	Around 10 million people in the UK live in a leasehold property. They might pay a mortgage
0:56.4	or even own their home outright, but they also have a landlord, the freeholder. And as well as
1:02.3	their mortgages, they may also be liable for ground rent, service charges, insurance fees and
1:07.8	maintenance costs. Behind the scenes, work is continuing on the leasehold and
1:12.4	freehold reform bill. In fact, just this week, it's being examined by members of the House of Lords.
1:18.2	But there are growing concerns among leaseholders and campaigners that promised changes may be watered down.
1:25.4	Before we hear from today's experts, let's hear from some leaseholders.
1:29.1	I went for a walk in Dakota Park in Chapelford, Cheshire. It's a wide green space. It's surrounded
1:34.7	by new build houses and flats. Many of those are leasehold homes. And as people walked by with
1:40.4	their children, grandchildren and dogs, I asked how they feel about someone else
1:45.5	owning the freehold behind their homes.
1:48.1	I understand why it is the way it is.
	...

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