The CMA’s consumer protection law investigation will cover two key areas:
- Potential mis-selling: whether people who have bought a leasehold property are given the information they need to fully understand the obligations they are taking on, for example the requirement to pay ground rent over a certain period of time, or whether they have an accurate understanding of their ability to buy their freehold.
- Potential unfair terms: whether people are having to pay excessive fees due to unfair contract terms. This will include administration, service, and “permission” charges – where homeowners must pay freeholders and managing agents before making home improvements – and ground rents, which in some cases can double every 10 years.
More information you might find useful:
- Who is the CMA?
- What is the CMA doing about residential leasehold property?
- Will leaseholders who have been mis-sold property be able to provide evidence to the CMA for its investigation into the leasehold market?
- What happens when the CMA has finished its investigation into the leasehold market?
- What is an unfair term?
- What happens when contractual terms are unfair?
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