Leasehold – What do the proposed reforms mean?
The Government has a new set of rules being prepared to tackle the “unfair and abusive practices” within the leasehold system, as part of its holistic approach to fixing a broken housing market.
It is planned to make sure residents only must pay for the services they receive. This is because for a long time, some freeholders have abused the existing system, charging excessive renewal extension fees, ground rental reviews and by far the most irksome, abusive management and maintenance fees, that are not transparent for the work done.
As in all sectors of the property market, there have been a growing number of management agents who charge very little in terms of fees to get the job. However, they then provide an almost non existent service, which endangers the very residents they are supposed to be protecting.
Block managing agents, like professional rental agents have a vast amount of experience and knowledge which is required to do their jobs properly and comply with the ever growing number of regulations associated with the industry.
With ground rents set to be controlled, greater support needs to be put in place for leaseholders looking to challenge unfair fees. Agents who just collect the cash and don`t provide a proper service will have to close or raise their standards therefore, a fairer and more professional approach will return.