First time buyers in Harrow are being let down by current leaseholds law, an MP has said. According to MP Gareth Thomas, around 30 properties were sold on the new Harrow View West site on a leasehold basis, but subsequent properties on the site were sold as a freehold, often for the same price or even less.
Harrow View West replaced the iconic Kodak factory, one of the oldest and largest businesses in the borough, which employed around 6,000 people at its peak.
Mr Thomas, who represents Labour for Harrow West, says many home buyers were not given enough detail about purchasing homes on a leasehold basis, in some cases until they had already spent significant sums ahead of final exchange.
The MP claimed that residents of Harrow View West were told by the developer, Persimmon Homes, that the entire site would be sold leasehold to retain the aesthetics of the development, but many homes were subsequently sold on a freehold basis.
The majority of residents were first time buyers who used the solicitors and mortgage brokers recommended to them by Persimmon, Mr Thomas said. Freeholders own both the property they purchase, and the land it is on. By contrast, leaseholders do not own the land, but take out a lease on the property and are charged ground rent by the freeholder.
