More New Build Trouble

Interesting Sky News article and unfair new build practices. CLICK HERE The question is though – do the buyers rely on what the builders tell them really, when they ought to rely on why their solicitor tells them? We do find a lot of new build buyers ignore buy against their legal advice (provided they don’t need a mortgage) and buy houses anyway. Also, a lot of the leasehold issues could have been solved with good legal advice as – where the buyer does get a mortgage – the solicitors should be telling the banks not to lend where the rent rises above the threshold for a tenancy to take effect (rent only needs to go above £250 for your lease to become a tenancy which a bank will not mortgage, or £1000 in London). Often a pitfall with variable rents and service charge reserved as rent. The whole problem of service charge of freeholds is a separate issue – and arguably worse if done badly (but ok when done well of course). Is anyone interested in more blogs on new builds, service charge and lease issues?

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