Leasehold costs create 'second mortgage' for five million homeowners
UKPulse Property Desk
An estimated five million leaseholders in England and Wales are facing what campaigners describe as a 'second mortgage' due to rising service charges, insurance premiums, and ground rents. Campaigners warn that key provisions of the Leasehold and Reform Act 2024 remain unimplemented.
- An estimated five million leaseholders are facing escalating service charges, insurance premiums, and ground rents.
- The National Leasehold Campaign states that key provisions of the Leasehold and Reform Act 2024 are unimplemented.
- Campaigners warn that rising costs are affecting property liquidity, making some homes difficult to sell or remortgage.
An estimated five million leaseholders in England and Wales are facing what campaigners describe as a 'second mortgage' due to escalating service charges, insurance premiums, and ground rents on their properties. Katie Kendrick OBE, founder of the National Leasehold Campaign, has warned that leaseholders are experiencing a financial crisis.
Kendrick stated that leaseholders are "trapped in homes they cannot sell, cannot remortgage and are struggling to keep up." She added that for some, the threat of losing their home "is no longer a fear, it is a reality."
The Leasehold and Reform Act 2024 was designed to address some of these issues. However, Kendrick argues that delays in bringing provisions into force are leaving leaseholders in financial distress.
The National Leasehold Campaign has called for immediate action to implement reforms. They argue that the leasehold system is "exploiting leaseholders, draining household finances and damaging the wider housing market."
Why this matters: The escalating costs are affecting property liquidity, with some leaseholders reportedly unable to sell or remortgage their homes. This situation could influence buyer preferences and lending decisions in the property market.
What this means for you: If you are a leaseholder, you may be experiencing rising service charges, insurance premiums, and ground rents, which campaigners describe as a 'second mortgage'. This situation may also affect your ability to sell or remortgage your home.