The Conveyancing Association has thrown its weight behind Government proposals to ban unfair leasehold deals on new build properties.
Earlier today the Department for Communities and Local Government announced an eight-week consultation on plans to crack down on the practice, saying it can harm consumers.
The Conveyancing Association director of delivery Beth Rudolf says: “We are delighted to see the Government responding to such a significant weight of evidence from leaseholders and stakeholders in the property industry, and producing proposals intended to prevent additional homeowners getting caught by escalating ground rents and unreasonable consent fees.
“We look forward to hearing more details on these proposals and hope they will deal with the single biggest loophole, the Commonhold and Leasehold Reform Act, which currently excludes leasehold homeowners from having any protection from unreasonable fees and unreasonable delays when buying, selling or simply improving their property.”
The trade body says the loophole has led to one landlord charging £300 for a deed of covenant when the First Tier Tribunal said three years ago these should only cost £80.
Last month a number of conveyancing groups joined forces and drew up plans to reform the leasehold sector following the recent ground rent scandal.
The Conveyancing Association says it hopes the Government will take the plans into consideration.
In the meantime the trade body says it will carry out a study on commonhold and whether it could be a good alternative to leasehold.