Agenda item

The following Motion was moved and seconded:

"There is a concern at the Government’s failure to adequately regulate the sale of leasehold properties within the UK and tackle the onerous terms of existing leases; at the financial burdens suffered by homeowners, due to unregulated developer practices, and the unacceptable terms of leases; for residents, who find themselves unable to sell their homes, except for a considerable discount, following the public’s increasing awareness of the struggles affecting leasehold homeowners.

Pledges to address the matter are welcomed however there is frustration expressed regarding the extent of the Government’s plans, and its commitment to support those already affected by unfair practices, and charges.

This Council resolves that:

A.       The Government be requested to take urgent action to address:

i)    The level of and rate of increase in ground rent charges that existing leaseholders are obliged to pay to developers, or the companies to which the freehold has been sold;

ii)    The practice of freeholders selling the freehold to third parties, without the knowledge of the existing leaseholders, and without first offering the leaseholder the option of purchasing the freehold;

iii)  The manner in which estate maintenance charges are levied against the leaseholders without sufficient transparency or cost-efficiency;

iv)  The unclear, and in many cases, seemingly excessive cost for the purchase of freeholds   by leaseholders including excessive costs even to enter into such negotiations;

v)   The unfair systems of administration charges imposed via the lease, to the hindrance of (for example) leaseholders who wish to make alterations to the property;

vi)  The requirement of existing leaseholders to have owned the lease for a minimum period, before being eligible to purchase the freehold;

vii)  The lack of advice and adequate compensation schemes available to many   leaseholders who believe they have been miss-sold, and/or their lease contains onerous conditions.

B.       The Chief Executive be requested to write to the Secretary of State for Housing, Communities and Local Government, to express the Council's concern regarding the above issues, and request further, pressing action is taken not only to restrict the development of further leasehold homes, but to provide appropriate support and means of redress for existing leaseholders."

An Amendment was proposed, which was accepted by the Mover and Seconder of the Motion as an alteration, with the consent of the meeting.

A vote was taken on the Altered Motion, which was CARRIED.

RESOLVED:   A.     That the Government be requested to take urgent action to address:

i)    The level of and rate of increase in ground rent charges that existing leaseholders are obliged to pay to developers, or the companies to which the freehold has been sold;

ii)    The practice of freeholders selling the freehold to third parties, without the knowledge of the existing leaseholders, and without first offering the leaseholder the option of purchasing the freehold;

iii)  The manner in which estate maintenance charges are levied against the leaseholders without sufficient transparency or cost-efficiency;

iv)  The unclear, and in many cases, seemingly excessive cost for the purchase of freeholds   by leaseholders including excessive costs even to enter into such negotiations;

v)   The unfair systems of administration charges imposed via the lease, to the hindrance of (for example) leaseholders who wish to make alterations to the property;

vi)  The requirement of existing leaseholders to have owned the lease for a minimum period, before being eligible to purchase the freehold;

vii)  The lack of advice and adequate compensation schemes available to many   leaseholders who believe they have been miss-sold, and/or their lease contains onerous conditions.

B.     The Chief Executive be requested to write to the Secretary of State for Housing, Communities and Local Government, to express the Council's concern regarding the above issues, and request further, pressing action is taken not only to restrict the development of further leasehold homes, but to provide appropriate support and means of redress for existing leaseholders.

C.     The Director of Development and Regeneration provide a report to Cabinet on the options available to this Council in controlling:

i)      The number of properties sold on leasehold in future housing developments and

ii)     The terms under which these leaseholds are offered to prospective buyers.