Old leaseholds not too bad, I used to pay £20 per year ground rent. I bought the freehold now however. Some of these newish builds are a total rip off. New build houses tend to be advertised as freehold now - think the government banned new leasehold houses.
I agree. We ended up buying our leasehold. We had to have our buildings insurance through them and I felt I was being ripped off. When I could look for myself I got the contents and buildings insurance for about the same amount as they were charging me for just the buildings insurance.
Myn is leasehold but it's an old house. There's 860 years left on the lease from 999....it has 50p a year ground rent and an absent freeholder.... It may aswell be freehold at this stage haha. New leasehold is disgusting. But the old ones are fine
A lot of things should be illegal but they aren't. My rent has gone from £650 a month now it's £1400 a month. What else can I do im looking around but they have all gone up.
People need to check if it’s a legitimate management company….there is corruption running rampant with fake/fraudulent companies that are not properly registered. There’s more information on the Richard Vobe’s channel.
Absolutely. First thing leaseholder should just stop. Also the residents of an estate should be able to choose the provider of the service. We have a terrible housing association managing our beautiful estate, a gated community, and we cannot change them. If flats owners can choose the provider of the service, that will create an healthy competition and better services.
😂 I very much doubt it was a mistake - it was a deliberate scam and it appears Peabody only replied when Sky News got involved - because they don't want their reputation tarnished, or other viewers or potential purchasers to know, what is really going on.
I nearly did it years ago, but my instinct said something is not right with it. That was when people could just about afford a place though, I'm not surprised with house prices now people are being lured by it.
Same, Im a landlord with a few properties and I would never ever touch leashehold or shared, irrespective of how cheap the property was this hangs over like a dark cloud.
Why? I dont see an issue with shared ownership, its a very good thing that many people use to get on the property ladder. In fact, its about the ONLY start point onto the ladder these days.
Thats her mistake - "the idea of shared ownership is to help people buy"..... its actually a way for developers to still sell overpriced houses - nothing to do with helping buyers...
It's even worse than that. The rent skyrocket every year which is linked to inflation and the service charges are uncapped. Also the idea of 'staircasing' is laughable because everytime the tenant staircases the property has to be revalued meaning a risk the property increases way past affordability and the rent will be recalculated to reflect that. The whole Scheme needs to be scrapped with freeholds automatically being transferred at no cost. It's a legal scam essentially by the government themselves
I did a ‘Right to Manage’ and managed the building for everyone else, saved 80% in the first year. Wanted £13k for a new elevator… we didn’t have one! And £10k for a new car park, laid 3 years prior. Cleaners were doing nothing and invoicing thousands
Not really. But "service charges" are usually a massive scam. Single source contracts with their mates and nobody who has ever dealt with property maintenance working as managers.
The Conservative Party had an 80 seat majority in 2019 and a promise to fix the leasehold and the broken property market. Again they failed to deliver. Service Charges and how they are spent are a bigger issue than ground rents. Trading Standards need to be extended to monitor these and act as an initial escalation point for Leaseholders.
Ground rents are morally reprehensible though. It’s about certain developers abusing their market position and the fact there is a crisis to extract money for nothing.
I couldn't agree more. People get distracted with ground rent issues. Service charge is and always will be the core issue. I acknowledge ground rent is relevant, but it is secondary to service charge.
Peabody ( no longer a trust) are out of control. They have no idea what they are doing with service charges. Where is the expertise in that group.? Another post office scandle coming up😮
It’s not really a scam, it’s just not a good long term option but it’s better than renting. The best thing is to do shared ownership for 5 years, sell it and then get a proper mortgage
Even freeholders pay service charges where the council doesn't adopt the roads. This is on top of council tax. They sell it as a payment to keep the area looking good. Councils love it as they don't have to fund it and still collect our money.
I doubt anyone believes that increase was a mistake, like charging for CCTV which doesn't exist. Housing in the UK is broken, and no-one in power has any intention of fixing it.
Why would tories fix something that doesn't benefit them? Social housing has no benefit to them because they can't make private money off it. We've let them privatise everything, meaning we as people have no power over our most essential needs to survive. They shafted us.
@@techgeek6142 yeah we're trying. ultimately the management company is appointed by the freeholder and that's a different company. we own houses on an estate where the appointed management companies just make up charges. i say companies as they keep going bust and conveniently losing all the money and fake accounts and then starting a new one up the next door down...
I would never buy a place like this, it’s just a scam. I bought a leasehold house in Northern Ireland last year, nearly 8000 years left on the lease, the only charge is for ground rent at £5 a year which hasn’t been collected for years.
I also have Peabody they increase my service charge from 190 to 240 suddently from this April. I am in UB3 London and I sent two message asking Peabody but no reply, calling them and provide a invalid email for me to send for the request.
@@NormanCollier-nf7nu incorrect, I know many people with leaseholds that don’t, especially in Sheffield, where they’re leasehold due to historical reasons where some duke owns a vast amount of the land but has no charge on it
Leasehold service charges, energy bills, train fare, fuel, council tax, groceries, interest rates, rent, mortgages have all increased to unaffordable levels.
Trading standards no longer take individual complaints. The CAB does that job for them but no one can get through to speak to them so the problem doesn't get resolved and these criminals can do whatever.......
I knew this was a scam the moment it was announced- i could of done this last year but decided i didnt want to share anything so decided to stay with my parents to save more
I asked if I could eventually own my housing association home. I was told I could not (even though I was previously told that I could when I agreed to it). They instead offered me shared ownership options. I am certain that they just don’t want us to get ahead of own anything.
Ive had shared ownership for 14 years nearly. My rent has gone up at least £10 per month every year. This year it went up £50 per month. I own 25% of the building, but have to take the costs for everything about the building. If It needs a boiler then I have to pay the full amount. The same goes for everything like kitchens, doors etc. The same property across the road with the same company get new boilers, front doors, windows etc for no real cost difference. They rent 100%. Its downright thievery. Its £35 per month for paperwork charges. Where does that go? If I bought another 1/4 of the building the rent wouldnt go down in pro, and I would have to pay £500 just to get it appraised. Johnny Johnson is the housing agency.
The problem is that all affordable properties (under 200k) that are NOT leasehold or shared ownership are in remote areas in the North. And they're being bought out by the government for state dependents and new arrivals.
The "surface" price of shared ownership may sound affordable to many, but service changes are not. Without sky-rocketing service charges, many "professionals" working in those shared ownership estates won't get an annual pay rise and would be out of jobs.
Never ever buy a house that is not freehold. And people need to stop buying these so called affordable housing and or any new builds that are also poorly built. Only then change willl happen
To me it looked like the idea of shared ownership is to make someone who rents responsible for paying for upkeep of the house, make them pay upfront, make them less likley to damage the house and unable to leave easily. NOT To make poor people able to feel like home owners.
Average british salary in 1950 £17190 (adjusted to todays money). Average house price in 1950 £82k. (Adjusted) Average house price today £285k Average salary today £35k
Had a cross lease where the other flat was owned and rented out by an agency. They tried to send me service charges for a long list of things that I had done myself. This isn't a faulty product it's corruption.
This is nothing to do with Shared Ownership... this is to do with Leaseholds... affecting all leaseholders whether they are shared owners or full owners.
Only one way to describe those who operate and over charge innocent people scambags!!! I hope she gets compensated for this! That’s the only right thing to do from this company. Also not responding to complaints and enquiry until sky news gets involved? Come on…
But this is ultimately a leasehold issue tbh and not a shared ownership matter. Everyone’s with a leasehold is susceptible to questionable service charge increases it just happens to be more problematic for shared ownership owners as they typically don’t earn much.
Now wheres that news article I read about an English teacher boasting about living in London with s 13k down payment on her mortgage, which was only 25% of her 500k flat? I wonder if she's looking at this...m
All these properties which should have been on social housing, council housing list are put down as shared housing by politicians family and friends who own property development businesses.
Also, if people can invest money into SO properties at a fixed %gain profit, and the SO has to keep trying to fulfil/cover the investors % then they will try every which way.. the housing is an absolutely complete mess
I hought a shared ownership five years ago , 60% every year rent has gone up and service charges, so i have a mortgage and a £250 charge off the housing company onward homes
In so many European countries, flats owners choose the company who manages maintenance. If the flats owner are no happy they can change. Here the housing associations can do whatever because they are never accountable. This is no free market, the housing associations are like a cartel.
Leasehold is a scam.
Shared ownership is a scam.
so are new builds with estate charges which have even less legal protections
Old leaseholds not too bad, I used to pay £20 per year ground rent.
I bought the freehold now however.
Some of these newish builds are a total rip off. New build houses tend to be advertised as freehold now - think the government banned new leasehold houses.
UK is a scam mate
I agree. We ended up buying our leasehold. We had to have our buildings insurance through them and I felt I was being ripped off. When I could look for myself I got the contents and buildings insurance for about the same amount as they were charging me for just the buildings insurance.
Myn is leasehold but it's an old house. There's 860 years left on the lease from 999....it has 50p a year ground rent and an absent freeholder.... It may aswell be freehold at this stage haha. New leasehold is disgusting. But the old ones are fine
Leasehold is a scam.
Shared ownership is a bigger scam.
A 138% increase should be illegal. It should be illegal to raise it higher than inflation.
A lot of things should be illegal but they aren't. My rent has gone from £650 a month now it's £1400 a month. What else can I do im looking around but they have all gone up.
@@chrishart8548 🥺 wow pure greed, sorry to hear that and to think I was complaining about my £100 increase.
@@chrishart8548your rent has gone up because the landlords interest has gone up. So he has to pay more to the lender and still needs to make a profit
No it shouldnt.
There should be enough competition to reduce the prices.
Having a monopoly is actually illegal for good reason.
People need to check if it’s a legitimate management company….there is corruption running rampant with fake/fraudulent companies that are not properly registered. There’s more information on the Richard Vobe’s channel.
The entire UK housing system is an archaic and bureaucratic joke. It needs to be drastically reformed.
Absolutely. First thing leaseholder should just stop. Also the residents of an estate should be able to choose the provider of the service. We have a terrible housing association managing our beautiful estate, a gated community, and we cannot change them. If flats owners can choose the provider of the service, that will create an healthy competition and better services.
Really feel for her , the companies in this country just find any loophole to extract as much money as possible, why does it always happen in the uk.
Blame the royals
@@KallusGarnet Yeah, because they introduce the laws don't they. 🤡
😂 I very much doubt it was a mistake - it was a deliberate scam and it appears Peabody only replied when Sky News got involved - because they don't want their reputation tarnished, or other viewers or potential purchasers to know, what is really going on.
Yeah, they got caught out and the TV channel exposed their criminal act.
Peabody has no reputation, look at their reviews on Google and similar sources.
Wouldn't touch one of these shared ownerships with a barge pole.
I nearly did it years ago, but my instinct said something is not right with it.
That was when people could just about afford a place though, I'm not surprised with house prices now people are being lured by it.
Same, Im a landlord with a few properties and I would never ever touch leashehold or shared, irrespective of how cheap the property was this hangs over like a dark cloud.
As Peter Kay would say “Who’s gota barge pole” 😂
Why?
I dont see an issue with shared ownership, its a very good thing that many people use to get on the property ladder.
In fact, its about the ONLY start point onto the ladder these days.
@@richardwillson101 people can buy an affordable one or two bedroom apartment flat
Thats her mistake - "the idea of shared ownership is to help people buy"..... its actually a way for developers to still sell overpriced houses - nothing to do with helping buyers...
It's even worse than that. The rent skyrocket every year which is linked to inflation and the service charges are uncapped. Also the idea of 'staircasing' is laughable because everytime the tenant staircases the property has to be revalued meaning a risk the property increases way past affordability and the rent will be recalculated to reflect that.
The whole Scheme needs to be scrapped with freeholds automatically being transferred at no cost. It's a legal scam essentially by the government themselves
Exactly
can't agree more. people gotta pay an 'IQ' tax on their mistakes
Shared ownership pushes up prices and demand. And keeps builders in work.
And keeps us building the properties we need.
What is the alternative?
@Nonegiven14582 developers accepting a lower profit margin and selling the houses at a price people can afford I imagine
I did a ‘Right to Manage’ and managed the building for everyone else, saved 80% in the first year. Wanted £13k for a new elevator… we didn’t have one! And £10k for a new car park, laid 3 years prior. Cleaners were doing nothing and invoicing thousands
Surely billing for non-existant elevator is fraud>? Why is no-one in prison?
the elevator in my apartment building has been out of order for almost 3 years but they still charge us for it lol
Service charges = disguised rent
Not really.
But "service charges" are usually a massive scam. Single source contracts with their mates and nobody who has ever dealt with property maintenance working as managers.
@@richardwillson101 how long of not paying the services charges until they take your house?!?!?!?!?!?!
The Conservative Party had an 80 seat majority in 2019 and a promise to fix the leasehold and the broken property market. Again they failed to deliver. Service Charges and how they are spent are a bigger issue than ground rents. Trading Standards need to be extended to monitor these and act as an initial escalation point for Leaseholders.
Ground rents are morally reprehensible though. It’s about certain developers abusing their market position and the fact there is a crisis to extract money for nothing.
I couldn't agree more. People get distracted with ground rent issues. Service charge is and always will be the core issue.
I acknowledge ground rent is relevant, but it is secondary to service charge.
Peabody ( no longer a trust) are out of control. They have no idea what they are doing with service charges. Where is the expertise in that group.? Another post office scandle coming up😮
Give with one hand. take from the other.
Happy I did not fall for this scam
I had an aunt that told me never go for shared ownership
It’s not really a scam, it’s just not a good long term option but it’s better than renting. The best thing is to do shared ownership for 5 years, sell it and then get a proper mortgage
@@TJay96nonsense … how can getting a 100,000k plus mortgage to still rent be better than renting
Even freeholders pay service charges where the council doesn't adopt the roads. This is on top of council tax. They sell it as a payment to keep the area looking good. Councils love it as they don't have to fund it and still collect our money.
And this is why no one should buy a property that come with these scam charges attached.
Isn’t it illegal to charge for a non existent service?
Fraud by false representation?
NEVER EVER buy a leasehold property.
I never knew about it, wtf, why it exists?
Shared ownership is not a dream! It’s a nightmare.
Never buy leasehold property. That's my advise and its been the same for 40 years
Okay but some people want to
@@kombe971 that's OK if they like uncontrolled additional cost. I prefer not to.
what out share of freehold?
Even if it’s 999 year leasehold? Why not?
U have to if u live in London and don’t have 450.000 for a house
LEASE HOLDER IS A SCAM . all schemes from govt. are scams and passing responsibility on people but taking credit for
the scheme.
Don't touch shared ownership with a barge pole or fleece hold .
I doubt anyone believes that increase was a mistake, like charging for CCTV which doesn't exist. Housing in the UK is broken, and no-one in power has any intention of fixing it.
Why would tories fix something that doesn't benefit them? Social housing has no benefit to them because they can't make private money off it. We've let them privatise everything, meaning we as people have no power over our most essential needs to survive. They shafted us.
We saw a house, as soon as we saw it had service charge it was immediately discounted.
management companies just make up charges. they should be regulated or clamped down on and local residents set up their own company.
Management companies are controlled by the Freeholder who can remove/replace them. A group of freeholder can remove the management company !
@@techgeek6142 yeah we're trying. ultimately the management company is appointed by the freeholder and that's a different company. we own houses on an estate where the appointed management companies just make up charges. i say companies as they keep going bust and conveniently losing all the money and fake accounts and then starting a new one up the next door down...
Shared conship, they should all stop paying service charges.
If they do they will get evicted
@@anthonyfaucy2761 depends most management companies are 3rd party companies so I doubt it is something they could do if all stopped paying together.
My service charge went up twice last year - its an absolute scam
It’s only an “error” from the landlord when national media gets involved
Welcome to Fleecehold UK !!
There should be legal action taken against service charges. They can’t just do what ever they want.
Just criminal
No...stupidity always pays.
Never expected shared ownership is not sunshine and rainbows, same with help to buy.
Greedy
What is worrying about this scam is that the police have not brought any criminal charges
The idea of shared ownership was to rip people off, not to give people a stake in their own home.
I would never buy a place like this, it’s just a scam. I bought a leasehold house in Northern Ireland last year, nearly 8000 years left on the lease, the only charge is for ground rent at £5 a year which hasn’t been collected for years.
I also have Peabody they increase my service charge from 190 to 240 suddently from this April. I am in UB3 London and I sent two message asking Peabody but no reply, calling them and provide a invalid email for me to send for the request.
10 secounds in. Incorrect. All leaseholds pay service charge. Regardless of the ownership %
Incorrect, not all leaseholds pay service charges, a know a few people who own older homes which are classed as leasehold who dont get charged
@@NormanCollier-nf7nu incorrect, I know many people with leaseholds that don’t, especially in Sheffield, where they’re leasehold due to historical reasons where some duke owns a vast amount of the land but has no charge on it
Not everyone can afford a home definitely need more social housing
Service charges are not monitored properly. All the maintenance companies are giving money under the table to the mansgement companies
Peabody. It may not be breaking the law. But thats still criminal.
Donr pay
and they'll take your home away
The worst of both worlds by the looks of it,
Leasehold service charges, energy bills, train fare, fuel, council tax, groceries, interest rates, rent, mortgages have all increased to unaffordable levels.
I have a 2 bed leasehold flat. The service charge went up from £1400 per year to £4500 this year. It’s absolutely criminal
How horrible
Leasehold and shared ownership are utter scams
Shared Extortionship 😬
Im so sorry for her😢
This leasehold etc schemes in this country is a massive scam
Thankfully i have a great exit plan to Cyprus 🧡
Trading standards no longer take individual complaints. The CAB does that job for them but no one can get through to speak to them so the problem doesn't get resolved and these criminals can do whatever.......
Service charge = = double council tax bill but without a maximum amount it can be increased.
I knew this was a scam the moment it was announced- i could of done this last year but decided i didnt want to share anything so decided to stay with my parents to save more
Service charges are illegal
I asked if I could eventually own my housing association home. I was told I could not (even though I was previously told that I could when I agreed to it). They instead offered me shared ownership options. I am certain that they just don’t want us to get ahead of own anything.
Set up to fail
My service charge when up 50% it’s crazy
Pay up
Ive had shared ownership for 14 years nearly. My rent has gone up at least £10 per month every year. This year it went up £50 per month. I own 25% of the building, but have to take the costs for everything about the building. If It needs a boiler then I have to pay the full amount. The same goes for everything like kitchens, doors etc. The same property across the road with the same company get new boilers, front doors, windows etc for no real cost difference. They rent 100%. Its downright thievery. Its £35 per month for paperwork charges. Where does that go? If I bought another 1/4 of the building the rent wouldnt go down in pro, and I would have to pay £500 just to get it appraised. Johnny Johnson is the housing agency.
The problem is that all affordable properties (under 200k) that are NOT leasehold or shared ownership are in remote areas in the North. And they're being bought out by the government for state dependents and new arrivals.
SERCO
I bet the leaseholders also own the maintenance companies
The "surface" price of shared ownership may sound affordable to many, but service changes are not.
Without sky-rocketing service charges, many "professionals" working in those shared ownership estates won't get an annual pay rise and would be out of jobs.
Never ever buy a house that is not freehold. And people need to stop buying these so called affordable housing and or any new builds that are also poorly built. Only then change willl happen
Everything in Britain costs an eyewatering amount- by design.
Rip-off Britain
Are these the new affordable homes the government takes pride in building
Abolish Service Charge
To me it looked like the idea of shared ownership is to make someone who rents responsible for paying for upkeep of the house, make them pay upfront, make them less likley to damage the house and unable to leave easily.
NOT
To make poor people able to feel like home owners.
Average british salary in 1950 £17190 (adjusted to todays money).
Average house price in 1950 £82k. (Adjusted)
Average house price today £285k
Average salary today £35k
Had a cross lease where the other flat was owned and rented out by an agency. They tried to send me service charges for a long list of things that I had done myself. This isn't a faulty product it's corruption.
Why am I not surprised it's a new build?
This is nothing to do with Shared Ownership... this is to do with Leaseholds... affecting all leaseholders whether they are shared owners or full owners.
I live in help to buy studio flat and my service charges are £4 000 per annum
Only one way to describe those who operate and over charge innocent people scambags!!!
I hope she gets compensated for this! That’s the only right thing to do from this company.
Also not responding to complaints and enquiry until sky news gets involved? Come on…
Never thought of shared ownership or leasehold as there'a a lot of hidden problems that comes with it.
She got the concept of shared ownership completely wrong.....
Service charges have always been eye watering. I cam see in years to come this being as big a scandal as the post office scandal. It's ridiculous
Service charge
Ground tax
Council tax
Rent
Mortgage.
Shared ownership A SCAM beware .
For shared ownership and leasehold the buyer is the product: a potential revenue stream. Two toxic products combined into one.
But this is ultimately a leasehold issue tbh and not a shared ownership matter. Everyone’s with a leasehold is susceptible to questionable service charge increases it just happens to be more problematic for shared ownership owners as they typically don’t earn much.
They only apologised because they got caught!
Robbery
It was always a trap, leasehold has been around for along time. The Government Should Fine these Very Companies.
Such a scam praying on desperate people who NEED a home. Should be illegal!
something seems too good to be true, normally is
Are people really surprised ?! 😳
This was nothing to do with a mistake. They purely didn’t want any bad press once they heard sky News.
It is only a mistake, when they get found out.
Now wheres that news article I read about an English teacher boasting about living in London with s 13k down payment on her mortgage, which was only 25% of her 500k flat?
I wonder if she's looking at this...m
Social housing is better. But not allowed to say so since Thatcher
Share ownership is a trap!
Capitalism is like a giant annoconda squeezing the life out of everybody.
💯!!
They always pretend it's a mistake when accountants get involved. Scrap leasehold!
Just greed and a chance to make money.
Not a mistake
All these properties which should have been on social housing, council housing list are put down as shared housing by politicians family and friends who own property development businesses.
No such thing as a free lunch
Also, if people can invest money into SO properties at a fixed %gain profit, and the SO has to keep trying to fulfil/cover the investors % then they will try every which way.. the housing is an absolutely complete mess
I hought a shared ownership five years ago , 60% every year rent has gone up and service charges, so i have a mortgage and a £250 charge off the housing company onward homes
How much have your service charges increased?
@TJay96 im not sure but they have gone up every year along with rent
Those houses look like Northstone properties, they're building some of those near me. I'll warn the buyers! A few flyers should do it.
In so many European countries, flats owners choose the company who manages maintenance. If the flats owner are no happy they can change. Here the housing associations can do whatever because they are never accountable. This is no free market, the housing associations are like a cartel.
non-existent services in exchange for unjustified ever increasing Fee’s is a cruel, greedy piss take.
People get duped by shiny things and enter these predatory agreements. Should be illegal
Shared ownership isn't social housing.