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The dream of leasehold reform could be over for leaseholders across the country, as the Treasury fears the move could wipe out up to £40bn of pension fund investments. According to a report in yesterday’s Sunday Times.
The National Land Rights Campaign (NLC) reacted last night as “disappointed” after hearing reports that the government was weak on land rights reform.
A spokesperson for the company said last night: “Thousands of leaseholders have responded to the government’s ground rent consultation on why existing ground rents need to be reduced to a pepper-grain level to avoid the inequities inherent in the two-tiered system. “I know that we explained all at once what happened.” The ground rent for newly built properties is limited to a grain of pepper.
“If the rumors are true, it is extremely frustrating that the Treasury and the Prime Minister are being lied to by sector lobbyists who are indifferent to the dire situation facing millions of leaseholders across the country. They also appear fearful of rent competition and legal challenges funded by deep-pocketed freehold investors.
“We believe that retroactive action on ground rent will not have a material impact on pension schemes, and pension schemes that have investments in ground rent should reassess it. No reputable company with a good investment strategy would invest in ground rents because of the misery they cause and the deplorable sales tactics that have led to high rents being imposed on so many leaseholders. I saw it with my own eyes.
“With a general election looming, it would be pure foolishness to abandon our manifesto commitments to help thousands of leaseholders.”
Conservatives accused of ignoring manifesto promise to abolish ground rent
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