Leasehold premiums explained

[tru.playaz]

Hi, I'm recently looking at shared ownership leasehold properties. If anyone has been looking you would notice most of these have a premium attached to the sale as a cash upfront payment, on asking I get told its for fixtures and fittings and improvements made to the house, these can range in price from 10000 to 50000.

 

My question is are these even legal, and why are they a thing, surely the value of the improvements have made to the house is reflected in the price of the house.I'm confused as to why anyone would pay  this. The First thing you would do is re do it all to your taste. 

 

Any advice on the matter would be appreciated, these premiums make affordable housing unaffordable. I read somewhere there was a petition or something to get this banned

[stu007]

Hi

 

I can understand your point but sadly their is no legal basis set on the amount for such premiums as these are set by whoever is selling the properties.

 

As for the petition you refer to that was rejected in 2022 as it did not meet the required petition standards.

Petition: Remove premiums on shared ownership housing for first time buyers.

PETITION.PARLIAMENT.UK

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The whole point in shared ownership is to help those with lower incomes to be able to get onto the property ladder by having a smaller deposit...