Persimmon is coming under pressure to scrap all its leasehold contracts with home buyers after reaching an out of court settlement.
Buyers on a Persimmon estate in Cardiff, St Edeyrn’s Village, claimed they were not told that their homes were leasehold.
Trading Standards was bringing legal action alleging mis-selling, with the case due to start next month and set to last seven weeks.
However Persimmon admitted to buyers that “we could have communicated better” and has now offered to give all leaseholders on the estate the freehold title, and to reimburse ground rent payments.
Campaigners say that thousands of other Persimmon buyers should receive the same offer – something that would cost Persimmon millions of pounds.
Cardiff Trading Standards told St Edeyrn Village residents that it would not be in the public interest to pursue the legal case, given the “inherent risks associated with this and the costs which would be incurred”.
But Katie Kendrick, founder of the the National Leasehold Campaign, expressed disappointment.
She said: “This case is of significant national interest. It is not an isolated case. Thousands feel they have been mis-sold their leasehold properties.”
A spokesperson for Persimmon said it had been a “goodwill gesture” to give the freeholds to the Cardiff residents.
He said of other customers: “We’ve given all our leaseholders the right to buy the freehold which we own at a price which is capped at the market value.”
The Daily Mail’s report has carried some interesting comments, many of which question why the buyers’ solicitors did not spot that the properties were leasehold and advise them accordingly.
One poster says he knows someone in Hampshire who had bought a Persimmon leasehold house: “They’ve been trying to sell it for the past two years, no one’s put an offer in, despite dropping the asking price. To all intents and purposes the house is effectively worthless as it stands.
“They are now trying to buy the freehold, for about 25 grand. They’ve already accepted a financial loss on the house as the asking price is a lot less than they paid plus the freehold cost.
“They were seduced into all this debacle by Help to Buy, which is yet another scandal in the making.
“They also pay property management fees of £500 a year, which is yet another scandal brewing. I wouldn’t touch a new build with a barge pole for these reasons, and that’s without the quality issues.”
The problem here is Persimmon flog on most of their freeholds, so wont be in a position to gift them back to the homeowner.
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First Port charge like demons for everything – even tenancy renewals on what they consider to be sublets. Can’t see them letting go of that cash cow anytime soon.
Ironic that they’re allowed to charge the landlord for renewals, but the landlord can’t charge the tenant – so theoretically, the landlord has to pay twice when he offers the tenant a renewal. At last correspondence, a renewal cost is £60 to E&M of Mayfair. Talk about money for old rope!
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The new PPI, the builders will take a pasting for this over the next few years.
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