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Landmark welcomes leasehold guidance for homemovers
7th March 2017
A new guide to help homemovers navigate the pitfalls of Leasehold property has been published by the Conveyancing Association, a membership body representing the interests of property solicitors.
The advice comes in the wake of several high profile cases hitting the headlines. National news outlets have reported on cases where the ground rent on leasehold properties was set to double every 10 years on the 125 year lease… starting at £250 p/a rising to £8,000 p/a by the 2050’s.
The issue was recently picked up by the BBC’s consumer programme “You & Yours” which followed the story. It found that in some cases the start of the lease was at the point the purchase of the land, rather than when the first homeowner moved in, meaning the rent doubled despite the homeowner owning the property for less than 10 years.
In a dispute brought to the Property Ombudsman, the failure to correctly identify a leasehold property resulted in the agent reimbursing a would-be buyer over £1,000.
CLICK HERE TO READ THE CASE STUDY
In another case, a new build leasehold was purchased with a view to buying out the freehold, a legal entitlement after 2 years of ownership. The cost was understood to be c. 30 times the ground rent of £150. However, in the interim the Freehold was sold to an investment group who upped the buyout to 89 times the ground rent.
The Consumer Protection Regulations (CPRs) require agents to establish material information, information which would affect a would-be purchaser’s decision to buy, up front.
By establishing better quality information up front, agents can comply with their obligations under the CPRs, improve the quality of their viewings and reduce the number of fall throughs.
CLICK HERE to view the Leasehold Guidance
Compliance in a Box from Landmark is the industry recognised compliance solution for Estate and Lettings Agents. Compliance in a Box helps agents proactively seek out and evidence their compliance activity under CPR’s by establishing material information, including information relating to the leasehold, up front.
Try Compliance in a Box today; contact Samantha Peacock on 01524 220013 or by email sam.peacock@landmark.co.uk or sign up below
Further Reading
http://www.telegraph.co.uk/money/consumer-affairs/new-build-property-trap-could-stop-selling-home/
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