Friday Jul 12, 2024

Nick Millican’s Take on the Current Leasehold Scandal in London

A real estate agent can make the process of selling and buying a lot easier. Such is the case of the expert, Nick Millican. The current high inflation rate has had far-reaching effects on homeowners across the United Kingdom. Besides lowering people’s purchasing power, it has led to higher prices for everything, including service fees and ground rents.

In the article “Leasehold Scandal,” published on the “The Standard” website on May 7, 2024, the author explores what the escalating costs mean for London leaseholders. As noted in this article, Nick Millican comments that increased inflation is to blame for the escalating service fees and ground rents.

A recent study by Barclays established that about 65% of London leaseholders feel that service charge fees and ground rent are unaffordable. Most are also concerned that these soaring costs will make it hard for them to sell their property. Many new homeowners in London are leaseholders, real estate agent Nick Millican shares. In particular, they must pay an annual ground rent for the land on which they have built their homes.

Further, they have other monthly obligations, such as paying companies responsible for routine maintenance of the houses and the surrounding areas, Nick Millican comments. High energy bills and mortgages worsen the leaseholders’ already dire financial situation. As a result, many fall behind on payments, risking property seizure. The escalating costs are why about 10% of leaseholders in London are considering selling their homes.

Nick Millican, a prominent figure in the real estate industry, believes that increased inflation has detrimental effects on the sector. Unless there is deflation, selling leasehold property or re-mortgaging will be a problem. However, there is hope that the Leasehold and Freehold Reform Bill, already in the House of Lords, will address the challenges currently faced by leaseholders.


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