Imagine this – once upon a time – you are a fly (or hornet) on the wall at the builders annual bash for awarding themselves 5 star customer service.
Two CEO’s are chatting:
I’m getting a bit worried that we will be found out over leasehold revenue – we may be stopped from selling the freeholds for the best price and have to offer them to the leaseholders for a pittance! What if we can’t double ground rents every 10 years – where is our income stream then?
Well here’s a plan – call it “son of leasehold” if you like. You know all that nice green space the planners make us create on new estates? Instead of paying a fortune in commuted sums to the council for adoption, let’s keep it. You never know if the rules change in future, we could build more houses or even have the odd fracking mine.
This is the wheeze – we use an old bit of property law and write it into their deeds so they can’t get out of paying. They won’t find out what they have got into until after they have signed the dotted line and can’t escape. We can tell them the service charge is for all the lovely green space on the estate. We won’t tell them it is our land, we run the management company which is answerable to us alone or that the council expect the land to have public access so the home owners will end up paying for clearing up after them as well. Sales can even hint at them being able to change the company or become members, but of course we won’t be doing that…
And they all lived happily for about 10 years until one day they looked up into the sky and saw a yellow and black cloud – as it got closer they saw a swarm of angry HorNets swooping down on them.