MP Welcome Protection for Leaseholders

Neil Gerrard, Labour MP for Walthamstow, has welcomed new regulations which will give more protection to leaseholders. The regulations bring into force some of the remaining provisions of the 2002 Leasehold Reform Act.

“I am pleased to see these regulations coming into force” said Mr Gerrard. “They will prevent some of the problems we had to deal with when the ex-Warner properties in Walthamstow were sold happening again in the future. It will also be much more difficult for landlords to threaten to take action on forfeiture of a lease for trivial matters.”

The new regulations will mean:

L     Landlords will have to demand ground rents in a specified manner before they can take action or impose penalties for late payment·      

L     Landlords will have to satisfy a leasehold valuation tribunal, or a court, that a breach of a covenant or condition of the lease has occurred before they can take any forfeiture action

·      Landlords will not be able to take action  on forfeiture of a lease as a result of trivial debts that consist of ground rent, or service charges, where the debt is less than £350 unless some of the money owed has been outstanding for more than 3 years

·      Landlords will be prevented from insisting that leaseholders use an insurance company either nominated or approved by them to insure the house.

Dec 2004

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