Lack of consistency from landlords could cost dear

Published on

pounds-notes

Conveyancing firm myhomemove is calling for greater consistency and clarity from management companies and landlords, in relation to the charges they levy at clients who are buying a leasehold property.

Last year, myhomemove managed 8246 leasehold transactions, 24% of which were for first time buyers. Analysing this data has revealed that there are vast discrepancies between the amounts charged by management companies and landlords for services including Notice of Transfer, Notice of Charge, Deed of Covenant, Stock Transfer and Application – currently leasehold clients can be charged anywhere from 10p to over £1000.

Doug Crawford, CEO of myhomemove, said: “In this day and age it seems incredible that there is no industry standard for management companies and landlords, meaning they have carte blanche to charge leasehold home buyers whatever they want.

“Over a third of our leasehold clients are charged between £100 and £200 by landlords and management companies; while the really unfortunate ones must pay between £500 and £1000. These fees are in addition to their moving costs, ground rent and insurance.”

Last year the number of first time buyers rose by 37%, while the number of buy-to-let investors also increased by 19%, with a large proportion investing in leasehold properties such as flats and apartments, especially in boom areas such as London and the South East.

Crawford added: “We appreciate that services cost money, but when a client is left baffled as to the amount they must pay and why, it seems very unfair; especially as they can not purchase the property without paying these charges and they have no way of ‘shopping around’ for a better deal.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

OMS renews technology agreement with Complete FS

One Mortgage System has renewed its agreement with Complete FS, extending the specialist distributor’s...

Twenty7tec adds more than 90 users to advice CRM in Q1

Twenty7tec has onboarded more than 90 users across 15 firms to its ADVICE CRM...

Offa expands home finance team as Islamic lender builds on product growth

Offa has strengthened its home finance division with four new hires as it looks...

Higher mortgage rates hit buyer demand

Higher mortgage rates and ongoing geopolitical uncertainty continue to weigh heavily on the UK...

Making children’s cover part of the mortgage conversation

Seeing a child unwell can often change how we feel, especially if you are...

Latest publication

Other news

OMS renews technology agreement with Complete FS

One Mortgage System has renewed its agreement with Complete FS, extending the specialist distributor’s...

Twenty7tec adds more than 90 users to advice CRM in Q1

Twenty7tec has onboarded more than 90 users across 15 firms to its ADVICE CRM...

Offa expands home finance team as Islamic lender builds on product growth

Offa has strengthened its home finance division with four new hires as it looks...