Editor's note: This brief was summarised by The Property AI Newsroom from a report by Guardian Property. Read the original article for full details.

Leasehold Campaigners Challenge Hidden Costs in New-Build Homes

Three homeowners, Katie Kendrick, Cath Williams, and Jo Darbyshire, encountered significant hidden costs after purchasing new-build homes, as the value of their freeholds increased and their properties became difficult to sell. Their experiences have led to a campaign that aims to address the leasehold system in England and Wales.

Cath Williams, a retired university lecturer from Ellesmere Port, Cheshire, discovered her home was leasehold only after she had paid her deposit. According to Williams, the term “leasehold” was not mentioned in promotional materials and was only added to her paperwork in pencil by an estate agent four weeks before her move-in date. By that time, she was unable to withdraw from the purchase.

Williams and others found that owning a leasehold property meant facing ongoing permission fees for alterations, the risk of increasing ground rents, and a reduction in property value as the lease shortened. These factors made it difficult for them to sell their homes and left them concerned about future costs.

The campaign led by Kendrick, Williams, and Darbyshire seeks to address these issues and could have implications for the leasehold system in England and Wales. The situation highlights the importance for letting agents and inventory clerks to be aware of leasehold terms and potential hidden costs when dealing with new-build properties.