Millions of leaseholders paying a “second mortgage”, warn campaigners
Summary
Campaigners say millions of leaseholders are facing sharply rising service charges, insurance premiums and ground rents, describing the burden as a “second mortgage”. The article argues that leasehold reform remains incomplete, leaving many flat owners unable to sell, remortgage or budget with certainty.
Why it matters
This is relevant to residential property surveyors because leasehold cost escalation affects affordability, marketability and client advice on flats and leasehold homes. It also highlights ongoing reform pressures that may influence valuation, transaction risk and reporting on service charge and ground rent liabilities.
Key points
- Campaigners claim millions of leaseholders are paying excessive ongoing costs on top of mortgage payments.
- Rising service charges, insurance premiums and ground rents are presented as the main drivers of financial strain.
- The article says some leaseholders are unable to sell or remortgage because of these costs.
- It references the Leasehold and Reform Act 2024 as not yet fully in force in the way campaigners want.
- The issue is framed as a wider housing market problem as well as a consumer protection concern.
Organisations:
National Leasehold Campaign, The Negotiator
Regulations:
Leasehold and Reform Act 2024
Locations:
Britain
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