• Shared Ownership Lease

    By Guest on 03rd Mar 2017

    I have a new shared ownership lease - restricted to 55 years or over and staircase to 75% only. My question is - in the lease it states a re-sale fee of 2.5% due to the landlord. I thought most were 1% fees? is it legal to charge 2.5% and is there any law confirming yes or no to this?
    Many thanks
    Theresa

  • 1 Answers

    By Guest on 05/03/2017

    There is no legal limit to the fee - the lease is a contract and there is no law that prevents a tenant from accepting a poor deal if he chooses. However the Office of Fair Trading have stepped in similar circumstances to negotiate a reduced fee (in respect of one particular landlord which owns the freehold of retirement properties it was agreed that instead of charging 1% of the sale price they would charge 1% of the original purchase price), so it might be worth speaking to the OFT for some guidance.

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