Leasehold sellers are increasingly being hit with inflated fees from freeholders and managing agents, often hundreds of pounds for routine paperwork and standard enquiries, leaving sellers little practical ability to challenge the charges when they need to complete quickly.
This growing fee inflation is fuelling calls for reform and may prompt government regulation, with the risk that the behaviour of a few could add cost and delay to the conveyancing process for everyone.
We deal with hundreds of leasehold sales a year and there seem to be an ever increasing number of freeholders and management companies trying to cash in.
Gone are the days when you could get away with paying a relatively minimal notice fee to the freeholder. Nowadays it is not unusual for a management company to change upwards of £400 for replies to some fairly basic buyer queries, £300 plus for a deed of covenant, £100 as a notice fee… it all adds up and often to more than our costs as the leasehold solicitors dealing with the sale (and for a lot less work!)
The trouble is that sellers are not in a position to dispute the level of costs (even where they are not technically due under the terms of the lease) when they are in a rush to complete their sale so management companies get away with making excessive demands.
With calls for reform getting louder it may only be a matter of time before the Government steps in and starts regulating the position resulting in more red tape and potentially slowing the conveyancing process down further.
I fear the greed of a few may end up working to detriment of all involved…..
I recently sold my leasehold flat and was shocked to find that, in order for the sale to complete, I had to pay the freeholder, Southern Land Securities, and managing agent Hamilton King (the two companies were registered on the same day and share two of the same directors) almost £700.
Share
Have a related issue you want to talk about?
