Brexit impact on uk house prices

[strongman93]

Many housing experts thought a Brexit would be devastating for the UK housing market, with building costs increasing and a two-tier market developing as overseas buyers took advantage of the plummeting value of the pound.

But they quickly changed their minds when the Brexit result came through, with many saying that a Brexit would result in higher house prices — at least for a while. We’ll likely have a better idea of the real impact in a few months.

There is still no sign of when — or even if — the UK will trigger Article 50, the two-year EU notice period, as both Conservatives and Labour are going through intense leadership battles. 

more details at Brexit impact on UK property market article

[soros]

Latest UK news is Taylor Wimpey are paying up to £130 Mil to rectify problems of selling leasehold houses with ground rent problems. Better ask your estate agent if their insurance company covers this kind of problem.

https://www.theguardian.com/business/201...nt-scandal

[Duskerdawn]

Latest UK  news  is Taylor Wimpey are paying up to £130 Mil to rectify problems of selling leasehold houses with ground rent problems.  Better ask your estate agent if their insurance company covers this kind of problem.

https://www.theguardian.com/business/201...nt-scandal

Thanks for the share. Ground rent is an important component of valuing the property, an important part that is often overlooked. 

It is noted that in Singapore, there is a waiver for ground rent as per Chapter 314 of the State Lands Act.

(http://statutes.agc.gov.sg/aol/search/di...0000;rec=0)

This should be read in conjunction with Chapter 29 Section 3(1) of Land Law. Where all land ultimately belongs to the state and other persons can only own an estate or some lesser interest in the land.

(http://www.singaporelaw.sg/sglaw/laws-of...chapter-29)

Therefore, we do not face the same issues of ground rent here in Singapore and this should be part of our concern when dealing in overseas properties.

[soros]

I think not many HK and Singapore buyers of leasehold flats in UK market are aware or understand the problems caused by the freeholder and managing agent .

Asking for payment of freeholder's consent to sublet the flat even though the flat was sold in overseas markets and asking for payment for registration of sublet tenant and for every new AST letting contract which could be every 6 months . The UK letting agent won't help you to defend against a greedy freeholder making excessive demands on foreign owners.

[soros]

The Nationwide building society – which is one of the top three mortgage providers in the UK – announced today that it will not lend on properties with doubling ground rent.

“Unreasonable multipliers such as doubling every five, ten or fifteen years not allowed. Escalation should instead be linked to a verified index, such as the Retail Price Index,” it says.

It adds: “In addition, the maximum acceptable starting ground rent on all new build leasehold properties will be limited to 0.1 per cent of the property’s value.”

For some unknown reason it also insists that the “minimum acceptable lease term on new build transactions (including office conversions) will be 125 years for flats and 250 years for houses.”

[soros]

From Guardian Newspaper issue 6 May 2017.

Overnight, Nationwide building society has made hundreds, and possibly thousands, of new-build flats and houses almost unsaleable – and they should be roundly applauded for doing so.
In a surprise intervention into the scandal of leasehold flats and houses sold with spiralling ground rents, the society said that from this Thursday it will stop lending against any new-build leasehold flat or house where the ground rent is more than 0.1% of the value of the property. It will also refuse loans on new flats with lease lengths of less than 125 years or new houses with less than 250 years. Developers will now be forced, if other lenders adopt the same policy, to slash the absurd ground rents or find that they simply can’t get any buyers.


https://www.theguardian.com/money/2017/m...new-builds