State Pensioners Feel 'Hoodwinked' as Leasehold Fees Soar by £400 Monthly
The Labour Party government has announced that millions of leaseholders across England and Wales will have their ground rent capped at £250 per year starting in 2028. However, this measure offers little immediate relief to those already struggling with escalating costs.
Pensioner's Financial Strain
Serena Laidlaw, a 72-year-old state pensioner residing near Brighton, purchased her one-bedroom leasehold flat in 2014 for £172,000. At the time of purchase, her monthly fees were a manageable £80. Today, she pays close to £400 each month, a nearly fivefold increase that has severely impacted her quality of life.
Ms Laidlaw expressed her frustration to The i Paper, stating: "I can't afford all these costs plus I want to go and live nearer to my family. I have had to give up all sorts of things I enjoy like going to yoga and choir classes. I can't afford anything now."
She added that issues with inflammatory cladding have further trapped her, as lenders refuse mortgages, leaving her feeling "trapped beyond words and very down and desperate about it all."
Campaigners' Disappointment
The National Leasehold Campaign (NLC), a grassroots leaseholder group in England and Wales, has voiced disappointment over the government's decision not to enforce peppercorn ground rents immediately. While acknowledging the cap will provide some relief, they argue it falls short of urgent needs.
Jo Darbyshire, a co-founder of the NLC, commented: "The cap will make a difference, particularly for people who bought new-build properties in the last 20 years with punitive ground rents. Ground rent is a charge for no service, it's money for nothing. However, 40 years is an incredibly long time to wait for peppercorn ground rents."
Slow Pace of Reform
Linz Darlington, managing director at lease extension specialists Homehold, highlighted that while the announcement is positive, implementation remains distant. He pointed out that much of the Leasehold and Freehold Reform Act 2024 has yet to be implemented, 18 months after gaining royal assent.
Darlington warned: "We are still waiting for much of the Leasehold and Freehold Reform Act 2024 to be implemented. For the cap to be of any benefit to leaseholders, we need this passed promptly and on to the statute books. At the current pace of reform, it may not be for many years to come. The speed of leasehold reform is glacial. We need meaningful reform and prompt implementation."
This situation underscores the growing crisis for leaseholders, particularly elderly residents on fixed incomes, who feel abandoned by slow legislative processes and rising costs.
