fbpx

Leasehold Details Can Prove Costly for Retirees

16th September 2016 By Arman Khosravi

With an ageing population, purpose-built retirement properties are becoming more and more prevalent. It is important when considering the purchase of such a property to look very carefully at the detail of the contract (this is normally in the form of a long leasehold) and, in particular, to understand the implications of clauses which relate to future events as well as those with more immediate impact.

A recent case illustrates the point.

It involved residents of a retirement village in Hampshire who wished to sell properties they held under long leases. They were appalled to discover that under the terms of the leases they were required to pay to the landlord up to 15 per cent of the open market value of the property on a resale.

The owners of the leaseholds claimed in court that those provisions were unfair under the Consumer Credit Act 1974, arguing that the leases were consumer credit agreements because the resale fees were a form of deferred payment to the landlord.

That argument failed because the leases did not mandate a specific amount that would have to be paid: no debt was created under the original contract for sale, so there was no ‘credit agreement’ created.

However, the leaseholders are not giving up. They are now claiming that the surcharge on resale is an unfair contract term under the Unfair Terms in Consumer Contracts Regulations 1999.

Source: Concious

Latest News

Relationship Status Put Under Spotlight in Divorce Case

26th February, 2024 By

Divorce proceedings are rarely cut and dry, especially where the passage of time adds complexity to matters. This was certainly so in a recent case that required a Family Court judge to rule on the validity of a decree nisi. The case centred on the divorce proceedings of a couple in their fifties and focused on a decree nisi that had been pronounced in 2012, following an application by the husband. Now seeking to finalise the divorce with a decree absolute, the husband asserted that the decree nisi had been properly...

Will Execution – Remote Witnessing Legislation Expires

22nd February, 2024 By

A legal amendment that was made during the COVID-19 pandemic allowing the witnessing of wills to take place via videoconferencing has officially expired. As of 31 January 2024, the Wills Act 1837 (Electronic Communications) (Amendment) (Coronavirus) Order 2020 is no longer active. It was introduced in response to the pandemic, as a means of facilitating the valid execution of wills via remote witnessing. The Order applied to wills made between 31 January 2020 and 31 January 2022, but was later extended to 31 January 2024. Section 9 of the Wills Act...

Psychotherapy Condition Leads to Contact Order Appeal

20th February, 2024 By

Wherever possible, the courts will do what they can to support contact between parents and children but, in some instances, that contact comes with conditions attached. The nature of such conditions was the cause of contention in recent appeal proceedings brought by the father of two young boys. The man appealed against a High Court order that allowed for contact periods with his children, which would progress from supervised to unsupervised and increase in length but were dependent upon him engaging in psychotherapy. This condition had been imposed following a...

Beware of Builders Offering Cut-Price Work – Court of Appeal Cautionary Tale

16th February, 2024 By

Every householder should understand the dire risks involved in opening their doors to those promising to carry out cut-price building work. A Court of Appeal decision provided distressing examples of almost the worst that can happen. A householder approaching retirement age was taken in by a workman who knocked on his door, offering to paint the front of his home for £1,000. He was introduced to another man – the offender – whom the workman described as his business partner. The pair proceeded, over a period of months, to carry...