A tenth of leaseholders in London are contemplating selling their property. This is due to high service fees and ground rents. According to a report by Nick Millican, only 35% of London leaseholders feel the costs are favorable.

Additionally, only 13% feel these costs are worth their investment. Most leaseholders complain about being blindsided by these housing charges, which keep increasing. When purchasing, Nick Millican shares, 34% of leaseholders had no idea of the increasing rate of their services fee and ground rent.

Nick indicates that most leaseholders worry about not finding buyers due to these costs. Most new homes in London are on leasehold, which requires ground rent payment. According to Nick Millican, this rises at a fixed rate and can double after a decade.

On top of that, they must pay a monthly fee for the building and surrounding area maintenance. Late remittance of these payments can lead to property seizure.

To avoid disappointments, Nick Millican advises leasehold property buyers to enquire about these costs early.

Luckily, the House of Lords already has a favorable bill for leaseholders. If passed, ground rent will drop to a nominal rate of 0.1% of the freehold value once the leaseholder pays a premium. Additionally, Nick Millican finally states, it introduces a ban on new leasehold homes as per the government’s promise to outlaw the system completely.