EXCLUSIVE: Residents in shared ownership hit with eye-watering service charges
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- Опубліковано 15 кві 2024
- The shared ownership scheme was introduced to help people to get onto the housing ladder, but is "desperately failing" due to rising service charges.
Sky News analysis reveals a record number of legal complaints about people hit by rising leasehold service charges - in some cases going up as much as 300%.
Read more: news.sky.com/story/shared-own...
#uk #property #sharedownership
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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
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
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.
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
Leasehold is a scam.
Shared ownership is a bigger scam.
Service charges = disguised rent
😂 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.
The entire UK housing system is an archaic and bureaucratic joke. It needs to be drastically reformed.
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.
Shared ownership is not a dream! It’s a nightmare.
Everything is designed to make rich richer, period.
*Designed to make smart driven people richer
@@crappymealYou mean greedy and dishonest people
@@crappymealmany smart people are not rich and many driven people are not rich. Many unintelligent people have been made rich and many unmotivated people have been made rich
@@JimmyBob708 yes there's some outliers
@@crappymeal exploitation has nothing to do with a person's intelligence but rather morals and ethics
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?
Give with one hand. take from the other.
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?
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😮
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.
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
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.
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?
Never expected shared ownership is not sunshine and rainbows, same with help to buy.
LEASE HOLDER IS A SCAM . all schemes from govt. are scams and passing responsibility on people but taking credit for
the scheme.
NEVER EVER buy a leasehold property.
I never knew about it, wtf, why it exists?
Just criminal
No...stupidity always pays.
There should be legal action taken against service charges. They can’t just do what ever they want.
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 🧡
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
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.
My service charge when up 50% it’s crazy
Pay up
Shared Extortionship 😬
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.......
Greedy
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.
Set up to fail
My service charge went up twice last year - its an absolute scam
The worst of both worlds by the looks of it,
Donr pay
and they'll take your home away
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.
Peabody. It may not be breaking the law. But thats still criminal.
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.
For shared ownership and leasehold the buyer is the product: a potential revenue stream. Two toxic products combined into one.
Leasehold and shared ownership are utter scams
The idea of shared ownership was to rip people off, not to give people a stake in their own home.
Everything in Britain costs an eyewatering amount- by design.
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 live in help to buy studio flat and my service charges are £4 000 per annum
I bet the leaseholders also own the maintenance companies
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…
Shameful when people have to go to the press for help!
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
Shared ownership isn't social housing.
non-existent services in exchange for unjustified ever increasing Fee’s is a cruel, greedy piss take.
Rip-off Britain
Why am I not surprised it's a new build?
Robbery
Abolish Service Charge
Service charges are illegal
It is only a mistake, when they get found out.
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
Your rent portion is more than renting on its own. Property trap
It’s really not. It half or less of the market rent
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
Knew it was a con years ago.....
So they didn’t speak to her but when Sky contacted them they said it was a mistake? Yeah okay Peabody Con Artist’s 🙄🤨
basically once the news was on their back, oh were sorry it was a mistake, lie!
Just greed and a chance to make money.
Not a mistake
Out of order, complete con and money grabbing
Its scaaaaaaaammmm wagie!!!!
Whew chile
Capitalism is like a giant annoconda squeezing the life out of everybody.
Scammers
Vote Tory, get Tory. They aren't called robbers without good reason.
Partners in crime, no thanks
Leasehold and shared ownership 😂🤣🤣😂only suckers buy something like that.
A lot of suckers around they make bad financial decisions look normal
Not everyone is an expert in buying property and just want somewhere to live that’s reasonably affordable.
Other countries in Europe can get this balance right except us.
Where is the morality?
Why is shared ownership so bad? I don’t make enough or have enough savings for a 100% share of a freehold house… With shared ownership I have a 1 bed flat with rent+ service at 700. £500 into mortgage each month instead of paying £1300 rent for a much worse flat. After 5 years if I sell I’ll have £25k+ back and whatever I’ve saved
LOOOOOL
God bless the Tories
Buying Freehold is one of the main parts of buying a house I will not change
Government conning the people, that doesnt soud like the UK at all 😂, shared ownership shouldnt exist, leasehold shouldnt exist and nor should stupid service charge