Promises of freeholders to leaseholders (leasehold scandal)

Low prices

One of the reasons behind leasehold scandal is low price of leasehold houses. It is also one way to attract buyers. Of course, prices of leasehold houses always were lower than prices of freehold houses, but taking in consideration that sellers knew they are going to earn a lot of money, they set price even lower. That fact will invite young couples to buy leasehold houses and to sign contract for next 999 years, as happened.

Fake freehold price

When someone hears that some man is affected by leaseholder scandal, first thing that occurs to him is why that man just doesn’t simply buy freehold. Well he would, but he can’t. When he bought house, freeholder told him that in the future price of freehold is going to be approx from 3000 to 4000 pounds. But then freeholder sold freehold to big companies for 10 000 pounds. Now those companies want from 30 000 to 40 000 pounds for freehold, and that is too much.

He didn’t mention him doubling rates

This is not classical promise, but in some way it is. When you say that rent rate is 300 pounds, but you don’t say that it is going be doubled every 10 years it is like you promise him that rent rate is going to be 300 pounds to the end of contract.

He didn’t mention him additional fees

As I said, this is not standard promise, but again it is kind of it. When there is something unusual in contract, something that is not common for that kind of contracts, you have responsibility to mention what is unusual there. Who knows how many other things freeholders promised leaseholders.