LEASEHOLD - JUST PUT ALL THE FEES ON RIGHTMOVE!!!

eddddy

IAMIAM said:

I Do. There is some way in the future that freeholders will collect a fee not called ground rent or leasehold extensions. 

You should tell parliament about that then, because I don't think they know.

They've spent years talking about abolishing ground rent for dwellings.

They've even published the Leasehold Reform (Ground Rent) Act 2022
(link: https://www.legislation.gov.uk/ukpga/2022/1/contents/enacted ).


But it seems they've wasted a lot of their time, because you've found a way that freeholders can get around the legislation - essentially by calling "Ground Rent" a different name.

IAMIAM

eddddy said:

IAMIAM said:

I Do. There is some way in the future that freeholders will collect a fee not called ground rent or leasehold extensions. 

You should tell parliament about that then, because I don't think they know.

They've spent years talking about abolishing ground rent for dwellings.

They've even published the Leasehold Reform (Ground Rent) Act 2022
(link: https://www.legislation.gov.uk/ukpga/2022/1/contents/enacted ).


But it seems they've wasted a lot of their time, because you've found a way that freeholders can get around the legislation - essentially by calling "Ground Rent" a different name.

Think of it like this, fuel tax, council tax, poll tax, car tax, stamp duty tax, income tax, national insurance tax, valued added tax, bla bla bla so yes, telling parliament will certainly give him some more ideas, how about a £200 loan for paying your energy bills. 

eddddy

For the benefit of future readers of this thread...

Freeholders cannot replace Ground Rent with some kind of Admin Fee added to the service charge.


The law says that all fees included in a service charge must be reasonable. It would not be reasonable for the freeholder to be paid a fee for doing nothing.

As you would expect, in general, the law doesn't allow Management Companies to use leaseholder's service charge money to pay people for doing nothing.

IAMIAM

eddddy said:

For the benefit of future readers of this thread...

Freeholders cannot replace Ground Rent with some kind of Admin Fee added to the service charge.


The law says that all fees included in a service charge must be reasonable. It would not be reasonable for the freeholder to be paid a fee for doing nothing.

As you would expect, in general, the law doesn't allow Management Companies to use leaseholder's service charge money to pay people for doing nothing.

Well this is an absolute Lie. Service charges are extortion and most management companies have salaries coming out of their ears that people have to pay for including usually a £200 fee for a print out of one sheet for selling purposes. So yes, service charges and admin fees are very much UNREASONABLE

beckstas-money

OP really agree with this. I’m 8 weeks in to a purchase a leasehold flat from local authority via a probate sale and have been provided no leasehold information. Chased and chased even paid the £3 myself to get some info from LR so i could find out the lease length. 

!!!!!! EA keeps bothering us asking for mortgage survey. We will not apply for the mortgage until we have this info in full.

i can see a rough estimate as a flat a few doors down went up for sale and that EA listed the information but it was a room smaller so may not be accurate. It’s really really frustrating