56 per cent of lease administrators charge ‘unreasonable fees’ during ‘lengthy’ leasehold property transactions, according the The Conveyancing Association (CA).
The news comes following calls from the CA to end the ‘significant delays’ and ‘overcharging’ – which it deems to be all-too-common.
According to the CA, an ‘overhaul’ in the sector is essential, after Land Registry data showed evidence that leasehold transactions are rapidly on the rise.
260,000 such transactions were recorded in 2015 – up 40,000 from the 220,000 recorded in 2011.
Outlining recommendations for reforms to the transaction process, the Association said that there was currently a ‘complete lack’ of registration or regulation required for lease administrators, which had a tendency to lead to ‘significant delays’ to find the right person, agency or company during transactions.
The CA added that there was an ‘imbalance’ of bargaining power between administrators and leaseholders.
Details of a survey released by the CA found that 62 per cent of estate agents thought that leasehold sale information caused ‘real issues’ in the house moving process.
A further 34 per cent labelled leasehold legislation ‘an absolute nightmare’.
The Association has called for updates to the Commonhold and Leasehold Reform Act 2002, which, if introduced, would ensure reasonable fees and a clamp down on duplicate fees in the presence of ‘multiple administrators’.
A spokeswoman from the CA, said: “Now is the time to develop a much fairer system, with transparent and reasonable costs, as well as an obligation to provide the data required within a 20-day timescale.
“The extortionate costs being levelled by some coupled with a distinct lack of motivation to provide the necessary information means action has to be taken”.