Three homeowners from Cheshire who faced significant financial burdens due to leasehold arrangements on new-build properties have led a campaign that could result in substantial changes to the leasehold system in England and Wales.
Katie Kendrick, Cath Williams and Jo Darbyshire discovered they were subject to tens of thousands of pounds in hidden costs after the freeholds for their properties increased in value, rendering their homes difficult to sell. Their campaign has brought national attention to what critics describe as a ‘feudal’ system of property ownership.
Unexpected leasehold terms
Williams, a 69-year-old retired university lecturer from Ellesmere Port, said she was unaware her property was leasehold when she purchased it nearly a decade ago. 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 completion, after she had already paid her deposit.
The leasehold structure meant that any alterations to her home required permission fees payable to the leaseholder, with charges increasing over time. The arrangement also meant the property would decrease in value as the lease shortened, and ground rent could rise substantially, potentially making the property unsellable.
Wider property market implications
The campaign highlights systemic issues within the new-build property sector, where leasehold arrangements on houses have become increasingly common. Industry observers note that the practice has created significant challenges for homeowners attempting to sell or remortgage their properties.
The issue has parallels with other areas of regulatory concern in the property sector, including recent changes to tenancy legislation and broader questions about housing policy reform.
Williams initially dismissed information about leasehold issues when a leaflet was delivered to her home, only to later discover that leaseholds on her estate had been sold without residents’ knowledge, potentially costing homeowners thousands of pounds.
Campaign outcomes
The three campaigners’ efforts have contributed to growing pressure for legislative reform of the leasehold system in England and Wales. The movement has drawn attention to practices in the new-build sector where developers and housebuilders have sold freeholds to investment companies, leaving homeowners with escalating costs and diminishing property values.
The campaign represents one of several grassroots movements that have emerged in response to property ownership structures that place significant financial burdens on homeowners, particularly those purchasing new-build properties from major developers.