TPO reveals its work with Law Commission into retirement leasehold fees

The Property Ombudsman (TPO) has revealed how it has been working with the Law Commission to produce a report that heavily criticises retirement property landlords for charging hidden leasehold fees when properties are sold or sub-let. The fees involved as called ‘event fees’ and over costs “buried deep” in leaseholds and then charged when there is a Transfer of Title or Change of Occupancy – and even when a spouse or carer moves into a property. Agents are also highlighted in the investigation, which has been conducted over two years and shines a light on how many retirement properties are sold. It has now been presented to parliament and the Law Commission says it is now awaiting a response from the government. Landlords criticised TPO backs the Law Commission’s stance that the fees help offset the often substantial cost of the extra on-site healthcare services many retirement home developments offer, but criticises many landlords – and agents – for not highlighting the fees at the point of sale. “Owners are not always being told about the charges, which can be up to 30% of the property price,” the Law Commission says. “Others may be hit by huge bills for changes…

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