CMA Update on Leasehold Mis-selling

The CMA (Competition and Markets Authority) have issued an interim update report on leasehold houses mis-selling. The findings totally vindicate the work of the National Leasehold Campaign and Leasehold Knowledge Partnership in publicising the selling practices and onerous leases being almost universally promoted by the big plc housebuilders in recent years. The report identifies the major areas it will work on and plans to call for more evidence.

In paragraph 14 there is specific reference to “fleecehold” :

The Secretary of State for Housing, Communities and Local Government, a number of MPs, and members of the public have expressed concerns about freehold mis-selling – so called ‘fleecehold’. This is a separate issue from those presently under investigation as our current focus is on issues
in leasehold home ownership. As the CMA’s Chairman, Lord Tyrie, has said, the CMA will in due course consider whether to investigate freehold mis-selling, assessing the matter against its prioritisation principles.
However we wish to complete our work in leasehold first and anticipate that doing so will assist us should we open a case on freehold mis-selling

What we would like is for them to also understand that estate charges are based on unfair contracts both for leasehold and fleecehold – it is not just a matter of mis-selling although this has happened with fleecehold too. The private estate market is rife with anti-competitive practices including embedded management companies, and sale of rent charges and/or land to private companies without any resident input, accountability or choice.


4 Replies to “CMA Update on Leasehold Mis-selling”

  1. Please hurry, some of us are facing yet again imminent risk of ccj and risk to losing our homes through inability to maintain a mortgage. This is a real threat to the wellbeing of children and breakdown of family, creating further homelessness. The next step for some of us is a caravan living off the council network, a serious loss of council revenue.

  2. Yes agree please hurry. In desperate situation. These my estate company are just arrogant and just batted of my complaint. Will lost my and my children’s home if this continues.

  3. Those paying the “rent” charge on what was sold to us fleeceholders are often bullied into paying a completely fictitious bill but very little, or no work is done. None of us knew what we were buying into. Many have experienced, as I did, constant pressure to complete and the “Maintenance Charge” was presented at the moment of signing for the plot as “just a small amount, nothing to worry about”. It was not explained to me that “Maintenance Charge” is a euphemism for a Rent Charge. I have bought freehold houses before. This is not a freehold! I have yet to receive a bill.

  4. Hi the situation is now made worse by Lenders refusing to provide loans on “rent charge” freeholders , my property is unmortgable and thus unsellable , this has ruined my retirement as I’d planned to sell up and retire to the coast , my MP is now involved trying to get a response from the managing agents who in the words of my solicitor have simply buried their corporate heads in the sand

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