黑洞社区

Individuals who bought leasehold properties from Countryside Homes with 鈥渄oubling鈥� ground rent have reacted with anger to the news they are not to benefit from a rescue package announced by the firm last week.

Last week Countryside announced that customers in properties it sold on four developments where the lease terms specified that annual ground rent payments should double every 10 years would be given the chance to buy back the freeholds or get the lease terms changed.

However, chief executive Ian Sutcliffe told 黑洞社区 that those that had bought properties where the ground rent doubled over longer periods, such as 15 years, would not be offered help because the contracts were not considered onerous.

The news follows growing concern over the practice of selling homes under leasehold contract, which the government has now promised to ban, and which led housebuilder Taylor Wimpey to write off 拢130m to help affected customers.

Darren Devonport, who bought a leasehold home from Countryside at the Norris Green Village development in 2012 with a 15-year doubling lease, said: 鈥淭his is properly disheartening. It鈥檚 frustrating and upsetting and means we鈥檙e still going to incur significant cost.鈥�

While Countryside is understood to be planning to offer freeholds to some customers for between 拢3,000 and 4,000, Devonport says the current freeholder for his property has asked for 拢8,500 to buy it back. In addition, while Sutcliffe said the decision not to help those with 15-year doubling leases was taken after consultation with mortgage lenders, Devonport said his mortgage provider had now indicated to him it was 鈥渟pooked鈥� by the lease terms and wouldn鈥檛 lend again.

鈥淭his Countryside offer makes the situation worse, it鈥檚 rubbing our faces in it,鈥� Devonport said.

Christine Davies, whose daughter bought a leasehold house from Countryside at the Copper Wells development with a 15-year doubling lease, said the firm should offer everyone affected the freehold to their home. 鈥淐ountryside needs to be able to say it鈥檚 addressing this problem because of the campaign about it, but it鈥檚 not. It鈥檚 all smoke and mirrors. It鈥檚 ploy to make it look like it鈥檚 doing something,鈥� she said.

Sutcliffe said last week that decision had been taken because the difference between rent doubling every 15 years and one rising in line with inflation was very marginal, and it wasn鈥檛 clear that those customers would be worse off. Sutcliffe said: 鈥淲e鈥檝e been speaking to lenders on this and we won鈥檛 leave people hung out to dry.鈥�

This is despite the fact rent doubling every 15 years implies an inflation rate of 4.7%, more than double the bank of England inflation rate target of 2%, and higher than it has been since 1991. While trade body UK Finance said individual 鈥渓enders may take different views of what constitutes onerous terms鈥�, mortgage lender Nationwide has publicly stated it will not lend against leases with ground rent doubling every 15 years.

The controversy follows criticisms of Taylor Wimpey鈥檚 bail-out plan, which only helps those who bought from Taylor Wimpey directly, and doesn鈥檛 give buyers a chance to buy their freeholds.  Countryside鈥檚 offer of help to its worst affected customers was welcomed by leasehold campaigner Sir Peter Bottomley MP, who told 黑洞社区 last week that Countryside 鈥渄eserves praise for having gone further than Taylor Wimpey in recognising the problem and trying to unwind it.鈥�