Pensioner, 90, hit with £17,000 ground rent bill – as next government faces call to abolish ‘medieval leasehold system’
A 90-year-old pensioner who has paid off his mortgage is having “sleepless nights” after being hit with a “feudal” £17,000 bill for ground rent.
Derek Taylor is one of five leaseholders at Elgin House, North Herts, whose annual ground rent has risen from £25 to £2,350 – an increase of 9,000%.
The rise has been backdated to 2018, meaning he now owes £17,169 in one lump sum and is facing legal action if he does not pay.
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The case has renewed calls for the next government to abolish England’s centuries-old leasehold system, which campaigners say is “feudal” and “exploitative”.
A ground rent is a charge leaseholders have to pay so they can have a home on land they do not own and does not require a service in return.
Derek Taylor owns his home but under the leasehold system, is required to pay rent to the owner of the land it is built on
The Tories promised to effectively abolish these charges in their 2019 manifesto, but the long-awaited legislation aimed at doing this now hangs in the balance following Rishi Sunak’s decision to hold a snap general election.
Read More: ‘Buying a flat ruined my life’: Leaseholders plead for tougher legislation
Derek, who has lived in the property for 50 years and paid off his mortgage, told Sky News: “We were asked to send £17,000 plus pounds and about a fortnight later we got a letter saying this amount is outstanding and if it’s not paid in five days, we have no course but to take you to court.
“That caused a lot of upset because who can simply pay that amount of money?
“The letter upset me because it was very threatening. You wake up in the night and can’t get to sleep again because it’s on your mind.”
The letter was sent to Derek by solicitors Salter Rex on behalf of the freeholder Quadron. They did not respond to a request for comment.
‘Let down by government’
The ground rent for these properties is now over £2,000 a year
It said £17,169 is outstanding on his account and if he does not pay “we will have no alternative but to commence legal proceedings”. It added that a £120 administration fee will be charged on top of that if no money is paid within five days.
The ground rent increase is allowed under the terms of Derek’s lease, drawn up in the 1960s, which said the fee could be reviewed in March 2018 and every 50 years after in line with the annual value of the land.
Derek and his neighbours, who were not aware of the clause, took the case to arbitration but it was ruled that the rise was allowed and the lease agreement “includes no requirement for the level of rent to be “reasonable”.
Derek, a former print worker, said: “It’s simply because they can. Legally that may be so but whatever way you look at it we can’t see that this is fair.
“We feel let down (by the government). This has been going on so long, it should have been sorted out a long time ago and when this bill does eventually get passed we don’t know if it will apply to our situation at all.”
Derek is due to meet his local MP Bim Afolami, who is also the economic minister, next week to discuss the issue.
In a newsletter to constituents seen by Sky News, Mr Afolami said he was aware of the situation and the government is “committed to removing these terrible practices”.
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Labour’s Barry Gardiner says leaseholders face ‘exorbitant’ ground rents for ‘no service’
‘Leaseholders in limbo’
At the last election in 2019, the Tories promised to reduce ground rent to a zero “peppercorn” rate.
But the Leasehold and Freehold Reform Bill, which was meant to be the mechanism for doing this, was only introduced to the House of Commons in November last year and is yet to be given Royal Assent.
The policy will be considered in the House of Lords later as part of the “wash-up” period, when the final bills that will become law are rushed through parliament before it is dissolved for an election.
The National Leasehold Campaign (NLC) has welcomed this news, amid fears the bill would be killed, but said the “devil is in the detail” as it is not clear if a cap on ground rents will be included in the final draft of the legislation.
This was due to be added to the bill as an amendment, but there have been reports for months that the Treasury wants to block the policy because it is worried about spooking insurers and pension funds that have amassed vast freehold portfolios.
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Katie Kendrick, co-founder of the NLC told Sky News: “Leaseholders remain in a state of ‘Leasehold Limbo’ wondering if they will be helped by this bill.
“It remains to be seen how far this bill will go but rest assured that there will still be some way to go to achieve our goal of abolishing Leasehold and a move to Commonhold.
“Abolishing the medieval leasehold system must be in all manifestos and any incoming government must prioritise this.”
Where do the parties stand on leasehold reform?
The issue could be a dividing line in the general election campaign, amid a wider housing crisis which at its heart is a problem of insufficient supply and spiralling affordability.
Labour has said they will abolish leasehold, but recently pushed back the timeline for doing so, blaming the Tories for watering down their own proposals.
Housing Secretary Michael Gove initially said he wanted to abolish the system, calling it “feudal”, but his bill only went as far as to ban leasehold on the sale of new houses.
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Gove speaking in 2023 says he wants to abolish ‘unfair’ leasehold system
Houses make up a small portion of around five million leasehold properties across England, most of which are flats.
Other provisions of the legislation include making it cheaper and easier for people to extend their leases, buy the freehold and gain the right to manage their buildings.
But whatever measures are ultimately enacted, for some leaseholders it will be too little too late.
Freeholders ‘cashing in’
Derek’s neighbour David Pickett ended up borrowing £54,000 from family members to change the terms of his lease so that moving forward, his ground rent will be £0.
The rise in ground rent risked leaving him trapped as it significantly devalued the property he poured his savings into, putting him at risk of negative equity and reducing his chances of selling it.
David Pickett had to pay £54,000 to renegotiate his lease and remove the ground rent clause
The payment included £15,000 in backdated ground rent and a £34,000 premium – a fee David says is around seven times higher than three other neighbours in identical properties who renegotiated their lease terms in 2016. They have a fixed ground rent of £100 a year and paid a premium of between £4,000 to £5,000.
However, for communications worker David that was not an option.
“Everything is done in mathematical formulas that are hard to understand, the language they use is so cold,” he said.
The 31-year-old said delays to leasehold reforms have allowed freeholders to “cash in” on people like him and Derek.
“Part of the reason we delayed to arbitration and tried to push this as far back as possible is because we thought these reforms were coming soon and when we were getting legal advice they were talking about this bill so we always had this hope.
“Now it just feels like that flame has been extinguished.
“It feels like there is nowhere to turn for help and anyone that can help wants £200 an hour.”
UK
Election 2024: I spent a week travelling on night buses to see a view of the UK politicians don’t
There is a rhythm to a night at the Bolton Interchange.
People dart from arriving buses, racing across the concourse to catch departing ones. Sometimes they do, sometimes they don’t. Each rush is followed by a brief lull.
Every night, hundreds of lives intersect at the Bolton Interchange. The night-shift workers and commuters, those out on the town and those just a little bit lost.
Each one has their own story, some are happy to chat, most lose themselves in whatever is playing through their headphones.
I spent a week on the night buses. With the election looming, what the politicians are experiencing on their campaign battle buses is not what ordinary people are seeing. Theirs is a very different perspective.
Sky News’s Greg Milam spoke to passengers on night buses
There is an unmistakeable despair about the state of the country, an indifference to what the political process might do about it and a dark humour about the future. There are very few flickers of optimism.
From the bus-spotter who says the country needs “a good clean”, to those who yearn for a Britain of a different age, to Pete, the elderly bluegrass guitarist heading for an open-mic night.
What does he think of Britain today? “Me and 50 mates are going to go to Lake Windermere to take a s*** in the water. We’ll see if they do anything to stop us, because they don’t seem to be stopping the water companies.”
It is just one of the many raw expressions of the frustration and hopelessness that I hear. As Carl, the night supervisor at the interchange, says: “Late shifts are different here. It is a real eye-opener.”
‘Vote? I just can’t be bothered’
With her shock of white hair and ankle-length peach quilted coat, Sophia Talbot is hard to miss as she jogs across the interchange concourse. She turned 80 a few weeks ago but is still working full-time. She is taking the 125 bus home after completing filming in Bolton as an extra on the TV drama, Waterloo Road.
Sophia: The country is a mess. When I first came to Bolton 21 years ago it was a really nice place and now it’s all run down and boarded up and I think that speaks for everywhere.
Every time I go to the supermarket, I seem to get less for my money. I can drive but I can’t afford a car so that’s why I take the bus.
I do the extras work for a bit of extra money. Extra extra money, I call it.
I don’t think I’ll last long enough to see things in this country change for the better. It will take a long time for that to happen because it has gone down too far.
I probably won’t even vote. I didn’t last time or the time before if I remember right. I just can’t be bothered, and I know that’s not good because if you don’t do it, you can’t blame anybody but yourself, can you?
‘I’m treated as third class, common muck’
It is just after 8pm, still light on this early summer evening, and Janey Fairhurst is passing through the interchange on her way from Bury to Wigan, after spending the day with a bereaved friend. She lost her job in medical research in November and, after 10 interviews, is still searching for work.
Janey: My life is drastically different to what it was. There are just not enough jobs. There are jobs down South but I feel the North gets forgotten about quite a lot when it comes to politics. Maybe they need to remember that we started the industrial revolution and they wouldn’t be here if it weren’t for that so maybe give the North some more funding and more jobs.
The empire is over, Britain has just crumbled, it has been going in the wrong direction for a long time and there’s no trust between the people and the politicians.
When I was in work I felt like I was winning. I could buy the Tropicana instead of Tesco’s own brand orange juice. You don’t really think about the politics of it all when you’ve got the money.
Now, I feel like I’m treated as third class, common muck and I’m not. I come from a good family. I feel frustrated, angry, sad, belittled, in a way – judged. I worked so hard to get where I was and now I can’t get back into it.
‘The cost of living has put a lot on people’
Three buses in the morning and three more in the evening are the routine of Saila Shabir’s working life. From her home in Great Lever to her job in Manchester, she says her time spent travelling has given her perspective on the value of community and the state of the country.
I think it wouldn’t do any harm for everyone to get on the night bus and experience life from this side of things. It might not be their cup of tea but it is a way to understand what people are saying and doing.
I find it uplifting travelling on the bus in the evening because you get to see people from all sorts of backgrounds. It is amazing, really, and it opens your mind that there’s huge prospects and a really expansive community that we could all bring together under one roof.
I’m not going to say I’m despairing but the cost of living has put a lot on people. People need to work together, we can’t just rely on one set of people to do it all. I am hopeful because I do trust the right people will do the job properly. I do see the darker side of life on the buses sometimes but you need the dark to see the light.
‘I have never known this country in such a state’
From his blue suede boots to his embroidered collar, Rick Conlon is dressed for a night on the town. It is 11pm and he is making his way home to Rochdale. At 6ft4in with a shaved head, it’s easy to see why he’s well known in local boxing circles. He is jovial despite despairing of Britain today.
Rick: I’m 58 and I’m not political particularly but I have never known this country in such a state. I just think it’s really tough at the moment. I know inflation has come down but there’s a lot of people far worse off than me struggling for food and the basic necessities.
We’re the fifth-richest country in the world, I find it incredible. When I was 16, 17, 18, in Margaret Thatcher’s time, 1981 and 1982, with all that political and social unrest, the country was still a better country. We had massive unemployment but the country was still a better country. People were looked after.
There’s that old saying about how you can judge a country by how it looks after its elderly. It’s just ridiculous how little they’re paid and how little they’re thought of.
If there’s one thing that makes me optimistic, bus fares make me optimistic. Two pounds – you can’t argue with that. Even then they’re probably subsidised but that’s great, because this is a great country, it’s just the government letting us down.
‘If it was up to me, I’d move country’
Muj Malik is travelling home with his partner Tabitha and five-month-old son, Zair, after another exhausting day searching for a new family home. They have faced months of frustration on growing council house waiting lists and, they say, see countless videos on TikTok from other young families in the same situation.
Muj: Things are not good in this country. My grandma moved here from Pakistan and my mum was born here so I’m third generation but, if it was up to me, I’d move country. I don’t want to live here for the rest of my life. I don’t see the point because the country is just going sideways.
At the end of the day, I’ve got a mixed-race baby, I grew up in a predominantly white area. I like the country and the people and I know there are people far worse off than us. But you’ve got war veterans from this country, people who have gone to war for this country, they’ve put their lives on the line, they’ve lost friends, and you’ve got them sitting outside of Asda homeless with no help whatsoever.
This country is fading miserably. I like the people, it’s not about the people, it’s about the way the country is run.
Victims are being taunted by criminals who are being released early from Scotland’s prisons today under emergency plans to tackle overcrowding, Sky News has been told.
Jails across the UK are in crisis with governors in England and Wales warning they could run out of space within days.
From this morning, the SNP government in Edinburgh is allowing more than 500 Scottish inmates, serving short term sentences, out early in a bid to tackle the issue.
Prisoners inside for under four years who have 180 days or less left to serve are being released in waves over the coming weeks across all Scottish prisons.
Sex offenders and domestic abusers are among those exempt, with governors handed a veto.
The charity Victim Support Scotland told Sky News the system will lead to reoffending.
Kate Wallace, its chief executive, said: “The last time this happened, over 40% had re-offended within six months. That created more victims, and we are fully expecting that to be the case again.
“Victims are concerned about the risks to their own personal safety, and we are aware already of some prisoners who have been in contact with victims saying that they are going to be released, and it being used as a coercive control tool.”
The prison population in Scotland is almost 8,300, more than exceeding the target operating capacity of 8,007.
The Scottish Prison Service insists safety is a priority.
A spokesman said: “Governors have vetoed anyone they found posed an immediate risk to individuals or groups, with the help of intelligence from police and social work.”
Keep up with all the latest news from the UK and around the world by following Sky News
Latest Ministry of Justice figures show English and Welsh jails currently have 87,395 inmates, with maximum spaces standing at 88,778.
The Prison Governors’ Association (PGA) claims police will be unable to detain people because there’s not enough room behind bars.
Some inmates in England and Wales are being freed up to 70 days early in a similar move to Scotland.
However, the Ministry of Justice was unable to tell Sky News how many convicts have been granted freedom since the system came into force in May.
The crisis has been put in to sharp focus with just days to go until the general election.
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Overcrowding is likely to be one of the biggest first challenges for whoever takes the reins at 10 Downing St.
The Conservatives previously pledged 20,000 new prison places by the mid-2020s but only 6,000 have been created so far. The Tory manifesto now aims to deliver the plan by 2030.
Labour also plan to create 20,000 spaces by allowing ministers to override local authorities on planning decisions.
But speaking to journalists on Tuesday, Sir Keir Starmer did not say whether he would scrap the early release system despite being heavily critical of the government’s strategy.
The Liberal Democrats promise to end overcrowding completely.
Scottish Justice Secretary Angela Constance said: “Immediate and urgent action is needed to deal with the significant recent rise in the prison population.
“In cases of emergency release, we have added two other ways to receive information.
“Victims can go through one of four named victim support organisations who can request information about a prisoner’s release on their behalf.
“Alternatively, a victim can contact the Scottish Prison Service directly to request that information.”
Four men have been arrested on suspicion of aggravated trespass in the grounds of the prime minister’s home, police have confirmed.
The incident took place at Rishi Sunak’s constituency address in Kirby Sigston, North Yorkshire, while he was attending events in London to mark the Japanese state visit.
A police statement said officers were “with the four men within one minute of them entering the grounds”.
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The arrests are connected to a protest by campaigners from Youth Demand. It describes itself as a group of young people who want “the Tories and the Labour Party commit to a two-way arms embargo on Israel, and to stop all new oil and gas licences”.
A spokesperson for the group said three of those arrested were taking part in the demonstration, while the fourth person was an independent photographer.
Keep up with all the latest news from the UK and around the world by following Sky News
A North Yorkshire Police spokesperson said: “They were detained at around 12.40pm before being escorted off the property and arrested on suspicion of aggravated trespass.
“The men, aged 52 from London, 43 from Bolton, 21 from Manchester, and 20 from Chichester, remain in police custody for questioning and enquiries are ongoing.”
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It comes after a separate incident last summer, when protesters scaled the roof of Mr Sunak’s home.
They held up banners which said “NO NEW OIL” and draped the building in fabric. It happened while the prime minister and his family were away on holiday in California.
Amy Rugg-Easey, 33, Alexandra Wilson, 32, Michael Grant, 64, and Mathieu Soete, 38, have pleaded not guilty to criminal damage, with a two-day trial set to take place in July.
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