What makes Leasehold Unsellable

Current government intervention

Since the government has already taken the step to curb the exploitation and abuse through the developers and freeholders, the legal and formal procedures and formalities are already in place to stop further leasing out of houses and selling properties on leasehold. This has been made illegal to a great extent and hence the phenomenon in itself is no more valid, making the sale of a lease improper and not allowed. This is the first and most powerful reason why there are not going to be any leasehold sales in future and it would be really tough and hard to find and facilitate such deal even if the two sides agree mutually with consent and wilful need. The law in place would render such deal illegal only with the huge risk running on both the leaseholder and freeholder.

Awareness through the exposed scandal

The earlier reason why people got into trouble and they could not see what they are getting into, was the lack of information, the coming changes, the inability to identify the future pitfalls, imposed blindness through withholding of information. Now the truth is out there in the market and the whole ground rent scandal has been exposed to the extent that it became a national issue and threat and made the government take steps to bring in the right justice to all stakeholders. Given this awareness, the chances are really low that any buyer would end up buying a house on lease or taking up the charge of already in place leasehold property through existing leaseholder.

Humongous Cash Payments

Even if all the odds work out, the amount to be paid is so huge including ground rent and other charges that it would be only a luxury buyer who would afford such a high risk and high cost transaction. This too, eliminates the chances of a further sale of a lease property. Hence the ground rent scandal has come to an end.