Property News · May 6, 2017

Three cheers Nationwide for bloodying housebuilder noses


The building society has made a surprise intervention into the leasehold flats and houses scandal, making hundreds of new-build properties unsaleableOvernight, Nationwide building society has made hundreds, and possibly thousands, of new-build flats and houses almost unsaleable – and they should be roundly applauded for doing so.In a surprise intervention into the scandal of leasehold flats and houses sold with spiralling ground rents, the society said that from this Thursday it will stop lending against any new-build leasehold flat or house where the ground rent is more than 0.1% of the value of the property. It will also refuse loans on new flats with lease lengths of less than 125 years or new houses with less than 250 years. Developers will now be forced, if other lenders adopt the same policy, to slash the absurd ground rents or find that they simply can’t get any buyers. Continue reading…

Source : theguardian.com
Read more…Three cheers Nationwide for bloodying housebuilder noses

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