Copied from UK Guardian Newspaper 13th Jan 2018.
Thousands of young homebuyers remain trapped in virtually brand-new homes made unsaleable by spiralling ground rents and abandoned by developers such as Taylor Wimpey, despite a ban on the charges promised by the government.
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Guardian Money can also reveal that the £5bn John Lewis pension fund is behind the soaring rents that have made the lives of some homeowners a misery.
Nathan Stewart, 27, contacted us after the sale of his home in Soham, Cambridgeshire, fell through last month. His buyers had agreed to pay £175,000 for the detached coach house, built by Taylor Wimpey in 2011, but the deal collapsed when their lenders refused to grant a mortgage against the property. The reason? Taylor Wimpey sold the house as leasehold, but with a clause whereby the ground rent doubles every 10 years. It’s currently £300 a year (a fee for which no service is provided) but, over the life of the remaining 109 years of the lease, Stewart says it will spiral to an extraordinary £307,200 a year. If Stewart and his wife Tasha stay in the home to retirement, they will be on the hook for annual payments of £9,600 a year, and possibly £19,200.
Many banks now flatly refuse to lend against properties with these doubling leases, making them effectively unsaleable. “We feel like we’re now prisoners in our own home. We’re also about £2,500 out of pocket after the sale fell through,” says Stewart.
https://www.theguardian.com/money/2018/j...rs-charges