The MP for Warrington South Andy Carter has pressed for legislation to tackle unfairness in historical leasehold contracts in Parliament during a debate on Leasehold Reform and Ground Rents.
Residents of Steinbeck Grange in Chapelford have spent the past 12 years trying to resolve a situation that they were unexpectedly drawn into when they were mis-sold their properties by David Wilson Homes. Residents say they were led to believe that they were purchasing freehold contracts, when in fact they were leasehold, meaning property owners have been hit with excessive management fees for communal areas on the estate.
It has become clear that most of the residents used a legal firm recommended by the developer—and those lawyers failed to point out the tenure under which the properties were being sold, and failed to make Steinbeck residents aware of the important clause in their contract documents.
Andy Carter MP said the Leasehold Reform Bill needs to go further, accounting for leaseholders such as those on Steinbeck Grange who are in historical contracts. Speaking in the House of Commons, he said:
I welcome many of the proposals set out in the Bill and recognise the important role that they will have in protecting leaseholders moving forward. I am however concerned that they will offer little comfort for the thousands of homeowners who have become trapped in historical leases, which I am afraid many were even unaware they were purchasing when they signed for their new home.
Mr Carter went on to ask the Minister what the Government is doing to tackle this problem faced by Warrington residents and thousands more across the country:
I ask the Minister what actions his department can take to tackle the problem faced by residents on Steinbeck Grange in Warrington and elsewhere who are locked into leaseholds and did not expect to be in this situation. I know that he has been working with the Competition and Markets Authority to try to find solutions, and I hope that he will continue to do that, so that a satisfactory outcome can be found.
Having met residents and constituents recently, I know that the impact that this has had on their lives cannot be overestimated. They have been living through a genuine nightmare, having bought what they thought was their dream home.
It is time not only for us to protect those who will be looking to buy a new home in the future, but to secure justice for those who have been mis-sold properties in the past and are still paying a heavy price through unreasonable management fees and escalating ground rents. I am pleased to support the Government’s efforts, but I urge them to go further.
Following the debate the Government agreed to meet with Constituents in Warrington South impacted by alleged miss-selling and indicated further legislation will follow.
