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Leasehold law 'needs to be tightened'
Tue 08 Jun 2010
The former president of the Law Society has called for leasehold laws to be revised.
According to Paul Marsh, a number of freeholders are charging too much for lease extensions to those who do not have a thorough knowledge of the law and their rights.
He highlighted the example of one client who was offered a lease extension of £15,000, whereas a later independent valuation produced a figure of £8,000.
Mr Marsh accused some landlords of taking advantage of the gullibility of flat owners, as well as the complexities of the legislation.
He said the important point to take on board is that leases are a "wasting asset", which means "the shorter the lease when you sell, the worse your position".
Mr Marsh also stated if people want to extend the lease in a hurry, they are also in a "bad negotiating place".
He added that he is "anxious" to ensure flat owners know their rights in relation to the law.
Emma Chadwick, a partner at Winckworth Sherwood Solicitors, commented: "This case highlights the need for all leaseholders considering extension to get legal and professional advice about the process and procedures involved and the statutory formula which is used to calculate premiums for lease extensions.
"This can help leaseholders make their applications for extensions at the optimum time and help save money in some cases."
The comments comes after the Leasehold Advisory Service revealed that demand for its services has gone up by 24 per cent in the last year. 
