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

Afin Bank expands broker reach with L&C Mortgages panel appointment

Afin Bank has added L&C Mortgages to its broker panel as it looks to...

Fleet Mortgages strengthens executive team with two appointments

Fleet Mortgages has made two appointments to its executive committee under managing director Nicola...

Wealthy Advisers Club opens registration for free lead generation training

The Wealthy Advisers Club is to hold a free online training session for mortgage...

Guardian launches lower-cost critical illness cover

Guardian has launched CI Essentials, a budget critical illness policy designed for clients who...

Dudley BS reports record mortgage lending after broker investment

Dudley Building Society has reported record gross mortgage lending of £130.9 million in its...

Latest publication

Other news

Afin Bank expands broker reach with L&C Mortgages panel appointment

Afin Bank has added L&C Mortgages to its broker panel as it looks to...

Fleet Mortgages strengthens executive team with two appointments

Fleet Mortgages has made two appointments to its executive committee under managing director Nicola...

Wealthy Advisers Club opens registration for free lead generation training

The Wealthy Advisers Club is to hold a free online training session for mortgage...