X
etsos

Free trial Sign-up

Please leave your name and email and we'll be in contact shortly.

Name

Company

Contact Number

Email

Please complete the sum:        
17 + 6 =

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

 

Register your interest today

 

Verification

 

Further Reading

http://www.telegraph.co.uk/money/consumer-affairs/new-build-property-trap-could-stop-selling-home/

https://www.theguardian.com/money/2016/nov/05/ground-rent-scandal-engulfing-new-home-buyers-leasehold

http://www.bbc.co.uk/programmes/b08dmk4p

The client and experts view...

  • thumb1
Latest newsspeech Bubble

Government Confirms New Regulations and Qualifications for Estate Agents Will Happen

The government has accepted the proposals of the Regulation of Property Agents (RoPA) with wide-spread consequences for estate and letting agents.

The proposals reach right into the heart of the industry to affect regulation, training and licensing.

 

(more…)

Fears of Tougher Regulations and Unjust Costs Mount Ahead of Government Announcement

Estate Agents are waiting for the big reveal on Monday after Lord Best has admitted some firms could close when the regulation of property agents (ROPA) makes its recommendations to the Government early next week.

Lord Best, the chair of ROPA, has already outlined the working group’s desire for more regulation.

(more…)

[NEWSFLASH] Agent Charged DOUBLE Over AML Registration Mistake

Property Industry Eye (PIE) has highlighted the case of an estate agent who has fallen foul of HMRC and been charged double.

On 4th April, with plenty of time to spare, Hayman-Joyce renewed their annual HMRC registration. They paid the fee and thought they’d ticked all the boxes.

(more…)

Compliance in a Box: The Natural Remedy for Your AML Headache

Estate agents around the country are realising that the new 5th AML Directive goes deep. There’s a lot of work involved in becoming compliant. And the penalties for non-compliance, either deliberately or through confusion, are severe. (more…)

AML Checks: Guide to Uploading the Passport.

The campaign against money laundering has seen the HMRC issue £2.5m of penalty notices since June 2017.

Making sure you’re compliant is vital.

When it comes to carrying out your checks, we supply AML reports as part of our Compliance in a Box service. (more…)

divider
newsletter sign-up

Sign up for our e-newsletter

Name
Company
Email Address
trialTop

trial sign-up

Click the Apply button opposite to use our software on a trial basis...

trialBottom
  • etsosnews

  • etsosnews

  • Linkedin Twitter Facebook
    This site uses cookies. Find out more about this site’s cookies.