You are here: Home - News -

Taylor Wimpey tackles escalating leaseholds as new build sales grow

  • 27/04/2017
  • 0
Taylor Wimpey tackles escalating leaseholds as new build sales grow
Taylor Wimpey is setting aside £130m to address the issue of homeowners with escalating leasehold arrangements.

As Mortgage Solutions reported last month, the subject caused communities secretary Sajid Javid to announce that buyers would not be allowed to use the Help to Buy scheme on certain leasehold properties.

“I don’t see how we can look the other way while these practically feudal practices persist,” said Javid.

The biggest outcry was regarding homeowners who were subject to leasehold payments doubling every ten years, rather than by other typical measures of inflation.

In a statement, the builder said: “For those customers who acquired from, and remain the owner of a Taylor Wimpey leasehold property which is subject to this specific doubling clause, we have already entered into negotiations with the respective owners of the majority of the freeholds to alter the terms of the doubling lease to materially less expensive ground rent review terms, with the Group bearing the financial cost of doing so,”

“In the event that we are not able to reach agreement with individual freeholders, we will continue to pursue other avenues to help our customers,” it added.


Strong market

However, the house building market appears in good health as Taylor Wimpey and fellow house builder Persimmon reported strong results in interim reports for Q1, with both firms ahead on sales rates compared to last year.

Taylor Wimpey said its average private net reservation rates were 16% ahead of the prior year at 0.93 sales per outlet per week for the year to date (2016 equivalent: 0.80).

Its total order book stood at 9,219 homes, up 4.6% on 2016 week 16.

Likewise, Persimmon said its sales rate was now 4% ahead for the year to date.

It had sold 8,928 new homes with an average selling price of around £229,500, an increase of 4.1% over 2016.

Persimmon added that despite continued difficulties encountered with planning delays, it had opened 67 of the 90 new sites planned for the first half of the year.

There are 0 Comment(s)

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions

Read previous post:
Is credit card debt a bomb waiting to explode? – Benson Hersch

The growing issue of public debt was highlighted in the recent Budget speech, but the problem of private debt and...