The families in Cornwall 'trapped' in homes they can't sell

Families in Cornwall have told of being "trapped in unmortgageable homes" because the developer sold their freeholds to an overseas firm.

More than 70 homes in Hayle, Mount Hawke and Connor Downs were built as affordable shared ownership schemes.

Homeowners said the freehold's sale to a firm in the British Virgin Islands would scupper mortgage applications if they tried to sell.

Cornwall Council said it was in talks with the freeholder.

It added that it was unable to buy the freeholds "in these increasingly challenging financial times".

Residents argue until ownership of the freehold is returned to a UK-registered provider, planning laws meant mortgage companies will not green light a sale.

Ross Trewhella of Pentowan Gardens in Hayle, where 47 properties are affected, said they had been "trapped" in their starter home and unable to move for 16 years.

He added: "When we moved in we didn't have any children and then our first child was born about a year later.

"Now he's nearly 16 and he shares a bedroom with his nearly 13-year-old brother."

"The homes are unmortgageable, we find ourselves in an increasingly desperate situation."

Cornwall Council said when the builders of the estate first approached them to build the estate in 2007, it was turned down - but their refusal was overturned by the planning inspectorate.

After construction, documents show developers THF Limited sold its leasehold to a vehicle investment company in US, which then sold it on to a company based in the British Virgin Islands.

As the houses were subject to a section106 order, homeowners said they could only be sold at a discounted rate to locals, so cash buyers were also not an option.

Hannah Wright inherited her home on the estate when her mother recently died, but is now unable to make the mortgage payments, and is unable to sell.

At the time she bought it, her mother said "I am buying this for you", but Ms Wright now faces handing the property over.

"They've given us three months," she told the BBC, "and if that's not forthcoming they're looking at the repossession route. It's completely out of our hands."

The families have appealed for Cornwall Council to buy the freeholds to open up the market for lenders.

Cornwall Council said: "We greatly appreciate the frustrations of the residents over their position at Pentowan Gardens."

It said the homes were approved by the Planning Inspectorate against the recommendation of Cornwall Council, and that it had "no control" over the land, which was in private ownership.

"In these increasingly challenging financial times for local authorities, we are not in a position to purchase the freehold and as such have been in discussion with the freeholder to identify a way forward.

"We remain committed to these discussions and hopeful a resolution that suits the needs of the residents can be reached soon."

George Eustice, Conservative MP for Camborne and Redruth, said in a House of Commons debate on the Leasehold Reform Bill the situation had turned into a "complete nightmare" for families who had thought they were getting a "foot on the housing ladder".

The Department for Housing declined to comment but said it would meet with Mr Eustice.

A spokesperson for the freeholder said: "We are working closely with Cornwall Council to address the concerns raised by some homeowners.

"The solution currently envisaged does not require or involve selling the properties to the Council. We continue to work with the Council and expect to achieve a positive resolution for all parties in the near future."

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