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Renters hit by Covid-19 to be protected from eviction
ALEP lecture focuses on missing landlords
R enters of both private and social homes who are affected by Covid-19 will be protected from eviction for three months. As News on the Block went to press, Boris Johnson announced that legislation was being brought forward to prevent renters losing their home if they face difficulties “through no fault of their own”. The announcement came after criticism from some that only homeowners were being protected by government during the crisis. House buyers who find themselves in difficulties are being given a three-month mortgage holiday. Chancellor Rishi Sunak told a press conference that borrowers would not have to pay towards mortgage costs for three months “while they get back on their feet”. Answering criticism over the protection, the Prime Minister said: ““We will be bringing forward legislation which will prevent renters suffering no fault eviction that kind of thing, protect people who face difficulties through no fault of their own. “Nor can you penalise people for acting when they follow government advice. Everybody is entitled to protection, that’s
what we will provide.” Housing Minister Robert Jenrick set out the government’s planned legislation, which includes ensuring landlords cannot start eviction proceedings against tenants who struggle to pay rent for three months. To support the move, the three- month mortgage holiday would be extended to buy-to-let mortgage borrowers. SpareRoom director Matt Hutchinson said: “We know that the situation is complex. Many landlords are reliant on their income to survive, so simply enforcing a rent holiday could just shift the problem rather than resolve it. “But where landlords have buy- to-let mortgages, banks should be able to offer them the same deal as homeowners, to pass on to their tenants.” • Lockdowns to help thwart the spread of coronavirus has led to solidarity on the balconies of Europe’s apartments. The trend began in Italy where social media video footage showed residents joining together to sing or play instruments. Opera singer Maurizio Marchini went viral when footage appeared showing him performing Nessun Dorma from his balcony in Florence.
L easehold homeowners have been “misled and taken advantage of” after an investigation by the competition watchdog found “worrying evidence”. The Competition and Markets Authority (CMA) has issued a damning report following its probe and said it would take action against housebuilders. It has also called for a change in the law and for refunds to be paid. The CMA said many homeowners found themselves in “serious traps” after being misled by developers. It has not disclosed any names so far as it continues to investigate. T he impact of missing landlords on leasehold enfranchisement cases was the focus of the annual lecture of the Association of Leasehold Enfranchisement Practitioners (ALEP). Sector professionals debated the issue during the lecture, which was hosted by ALEP’s honorary president, Damian Greenish. Mark Chick, from the landlord and tenant team at Bishop & Sewell, offered step-by-step advice on how to navigate such cases through his presentation, Chick’s Top Tips. ALEP founder and director Anna Bailey said: “Enfranchisement cases with missing landlords frustrate both sector professionals and leaseholders – and it’s not an uncommon scenario. “This year’s lecture really drilled down on the issues faced in these instances and I am pleased to say that delegates enjoyed debate and discussion; as well as leaving with practical advice and tips they can use in their everyday professional lives. Reform to leasehold legislation was also discussed. Indeed, while none of us know
the outcome of future reform, I can proudly say that ALEP will be ready to face these changes.” Sir Peter Bottomley MP also addressed delegates in a special presentation and shared his view on missing landlords. He also commented on the current state of leasehold legislation. As father of the House of Commons and co-chairman of All-Party Parliamentary Group on Leasehold and Commonhold Reform, Mr Bottomley called for ALEP experts to continue supporting and guiding the sector through inevitable changes to leasehold legislation. He urged delegates to join together to “make the whole thing [leasehold] better for all”. Anna Favre, from Cripps Pemberton Greenish, and Tanfield Chambers’ Mark Loveday looked at vesting orders, the right of first refusal and the original missing landlord legislation. Henrietta Hammonds, of Beckett and Kay, looked at the role valuers play in such cases and shared advice on marriage value considerations, Section 9A factors and tips for valuers navigating missing landlord cases.
Housebuilders face court action over scandal
once you’re living there you want to feel secure and happy. But for thousands of leasehold homeowners, this is not the case. “We’ll be looking carefully at the problems we’ve found, which include escalating ground rents and misleading information, and will be taking our own enforcement action directly in the sector shortly.” The watchdog said it was “set to launch enforcement action” against companies that had broken consumer protection law. Housebuilders could be forced to sign legal commitments or face being taken to court.
in 2017. As well as escalating ground rent it found that some homebuyers were “misled” about converting the leasehold into freehold. It also found that buyers were being charged “excessive and disproportionate fees” for routine maintenance or making home improvements . Andrea Coscelli, the CMA’s chief executive, said: “We have found worrying evidence that people who buy leasehold properties are being misled and taken advantage of. “Buying a home is one of the most important and expensive investments you can make, and
It found that some buyers were not told upfront that a property was leasehold and what this meant. By the time people found out what owning a leasehold was, including regular ground rent charges, they were often unable to pull out of the sale or would have found it very difficult. In some cases, ground rents doubled every 10 years. The increase is often built into contracts, meaning people can struggle to sell their homes and find themselves trapped. The CMA opened a probe last year in the wake of the “leasehold prisoner” scandal that blew up
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