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

Meet the hosts of Mortgage’s Got Talent

As the mortgage industry prepares to swap case discussions, criteria and rates for microphones,...

Complex income must not become barrier to Scottish homeownership

Mortgage lenders need to keep adapting their criteria as changing working patterns leave growing...

LiveMore raises LTV limits and adds flexibility to equity release overpayments

LiveMore has increased maximum LTVs on mortgages with a repayment element and introduced more...

Cost of collapsed property sales rises to £258m in second quarter

Failed property transactions cost the UK housing market an estimated £257.9m during the second...

New-build homes account for 8% of properties on the market

New-build homes make up just 8.1% of properties currently listed for sale across Great...

Latest publication

Other news

Meet the hosts of Mortgage’s Got Talent

As the mortgage industry prepares to swap case discussions, criteria and rates for microphones,...

Complex income must not become barrier to Scottish homeownership

Mortgage lenders need to keep adapting their criteria as changing working patterns leave growing...

The fall in BTL company formations isn’t the whole story

It is often the case with housing and mortgage market data that the headline...