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

Rate rises squeeze demand as brokers lean on ‘needs-based’ borrowers

Rising mortgage costs driven by global uncertainty are beginning to weigh on borrower demand...

Finova Broker appoints Ben Radford to lead Broker Payments

Finova Broker has promoted Ben Radford to head of Finova Broker Payments, the mortgage...

Lloyds data glitch exposed details of up to 447,936 banking customers, MPs told

Up to 447,936 customers of Lloyds Banking Group were affected by a data breach...

Chancellor presses lenders to expand support for borrowers ahead of rate resets

The government has secured fresh commitments from major lenders to step up engagement with...

Suffolk BS tops £800m in mortgage assets after strong 2025 growth

Suffolk Building Society has passed £800m of mortgage assets for the first time after...

Latest publication

Other news

First-time, accidental or professional? How the landlord profile is shifting in 2026

One of the most common misconceptions that people have about the buy-to-let market is...

Q&A: Harpal Singh, CEO, conveybuddy

Mortgage Soup fires the questions at Harpal Singh, CEO of conveybuddy, the conveyancing distributor...

Rate rises squeeze demand as brokers lean on ‘needs-based’ borrowers

Rising mortgage costs driven by global uncertainty are beginning to weigh on borrower demand...