Leasehold laws 'in need of upheaval'

08 June 2010



There is an increasing need for leasehold laws to be transformed so some parties cannot take advantage of them, the BBC has learnt. An investigation by the news provider found some freeholders are over-charging for extensions, which is often going unnoticed because people are unaware of their rights.

Former President of the Law Society Paul Marsh highlighted that the market is currently unfair, as some leaseholders are charged over the odds to extend their contracts. A lack of regulation means that this cannot be tackled, which Mr Marsh believes should be addressed.

"Some landlords are using the complexities of the legislation and the innocence and gullibility of flat owners to their own advantage and I'm anxious that flatowners know what their rights are," he continued.

One case uncovered by the BBC saw a freeholder request £15,000 to extend a lease by 30 years, despite an independent valuer indicating it should only cost £10,000 for a ten-year extension. People do have the right to take any case they believe is unfair to a legally-binding tribunal, although many are simply unaware of their right to do so.

According to figures obtained by the BBC, around three million people throughout England and Wales currently reside in leasehold flats and houses and will never technically own them despite having a mortgage.

The Leasehold Advisory Service reveals that individuals are required to pay "reasonable costs" set out by the freeholders, which is limited to their professional fees such as legal and surveyors' costs. However, a leaseholder is not required to meet the costs of their freeholder attending a Leasehold Valuation Tribunal.

In many cases, the organisation advises people to increase the term of their lease as it can often be difficult to sell a property on a short-term agreement.

If you require legal advice, for either your private affairs or organisation, please call Buckinghamshire based B P Collins Solicitors on 01753 889995, complete the online enquiry form or email enquiries@bpcollins.co.uk.

Posted by Sue Deacon

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