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Has leasehold backfired on you?

Written by: Mary-Anne Bowring 02/09/2020
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CMA Launches Leasehold Investigation

  • The Competition and Markets Authority (CMA) has initiated an investigation into the leasehold housing market to determine if consumers are being treated fairly during the home-buying process, amid concerns about unfair leasehold terms.

Concerns Over Leasehold Mis-Selling

  • The CMA is focusing on whether buyers of leasehold properties have been fully informed about the long-term costs, such as ground rents, and their ability to purchase the freehold, potentially uncovering mis-selling practices.

Examination of Unfair Leasehold Terms

  • The investigation will also address the issue of excessive fees that homeowners must pay, including administration, service, and permission charges. These fees could be seen as unfair, especially when ground rents double over time.

Impact of Leasehold on Homeowners

  • The CMA is keen to understand how these leasehold practices affect homeowners, especially when it comes to long-term financial burdens and challenges in selling properties due to restrictive lease terms.

Action Against Misleading Practices

  • If the CMA finds evidence of misleading practices or unfair contract terms, it could take action to change the way leasehold properties are sold and managed, potentially improving fairness for future buyers.

Share Your Experience

  • The CMA is encouraging homeowners to share their experiences with the leasehold market, providing an opportunity for people to report any issues they’ve encountered before the deadline of July 12.




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