London, October 2019-(Amanjit Singh Khaira)-
Faisal Rashid, MP for Warrington South, accused David Wilson Homes of mis-selling leasehold properties to his constituents in Parliamentary Business Questions yesterday (17th October). Faisal raised the issues faced by residents of Steinbeck Grange, Chapelford and called for a debate to discuss compensation for existing leaseholders trapped in unfair and exploitative contracts. The Leader of the House, Jacob Rees-Mogg MP, recommended Faisal apply for a Backbench Business Debate on the issue, which he has since agreed to do.
Leasehold ownership, most commonly found in flats, means purchasing a home for the duration of a long lease rather than owning it outright. Homeowners who purchase a leasehold property are often faced with extortionate charges in the form of ‘ground rents’ or service charges and are locked into restrictive contracts which were not properly explained.
Figures have revealed that an estimated 47.84% of homes in Warrington South were sold as leasehold last year. Leasehold reforms promised by the Conservative Government have still not been implemented, two years after they were first proposed.
Labour have proposed a ban on the sale of new leasehold houses and flats. Under Labour, leaseholders will be able to buy the full freehold ownership of their home for 1% of the property value, with ground rents in existing leaseholds capped at 0.1% of the property value, up to a maximum of £250 a year.
Faisal Rashid, MP for Warrington South, said:
“A number of my constituents in Steinbeck Grange, Chapelford Development in Warrington south have been mis-sold leasehold properties by David Wilson Homes and face rip-off ground rents, punitive management fees and unfair contract conditions.
“Government action on this issue is unacceptable. Proposals have been brought forward to avoid future leasehold rip-offs, but nothing is being done for those already trapped in these onerous and exploitative contracts.
I will continue to fight on behalf of my constituents in Steinbeck Grange, who I believe deserve compensation. Time is up on excessive ground rents and service charges which rip off hard working people.”
