Leasehold: Older People

(asked on 13th January 2020) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask Her Majesty's Government, further to the investigation by The TimesĀ of the loss in value of new build retirement homes as a result of ground rent and service charges levied by management companies where house builders suggest to prospective buyers that they use solicitors proposed by the house builder, published on 23 November 2019, what plans they have to ensure that independent advice is made available to such buyers.


Answered by
Viscount Younger of Leckie Portrait
Viscount Younger of Leckie
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 27th January 2020

Home buyers are under no obligation to use the solicitor recommended by their developer and the Government makes this point clearly in its How to Buy a Home guide (attached). https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/829864/6.5492_-_MHCLG_-_How_to_Buy_Guide_WEB.PDF

There can be beneficial reasons for a property buyer to use a solicitor proposed by the house builder, such as greater familiarity with the processes of the house builder leading to fewer delays in the conveyancing process. The Solicitors Regulation Authority, however, is clear in setting standards of conduct and behaviour and provides a framework for ethical and competent practice.

If a homebuyer has a complaint against a conveyancer or solicitor, an estate agent, property developer, landlord or freeholder or management agent, they do have a right of redress. Trading Standards have published guidance for leaseholders seeking redress, which is available (attached) here: https://en.powys.gov.uk/article/7263/Guidance-for-consumers-seeking-redress-for-leasehold-matters.

Reticulating Splines