April 26, 2017

Exit fees: You have less than 30 days to provide your input

Please follow and like us:

ExitfeeCarlexCarlex has published a number of articles about the Law Commission’s work on “exit”/transfer fees, and which sort of charges should be allowed going forward. The end of the public consultation is January 29.

One of the problems faced by the project is that while those working in the retirement sector have constantly provided very detailed input, the responses from those living in retirement communities, or the heirs to these properties, have been much more sporadic.

The Law Commissioner’s speech at the House of Lords to those working in the retirement sector was attended by more than  120 representatives. By contrast, the event organised by AgeUK for all those living in the sector attracted less than 10 people.

While Carlex has repeatedly made the point that by their very nature many of those living in this sector will not feel able to read through 200 pages of complex legal reports, there is a danger the voice of the developers and providers will be heard too clearly.

This is the first in a series of articles about the Law Commission’s work which we hope will encourage some of you to make a submission.

LKPnewsletter3We start with what the Law Commission has found when it employed a firm to go on a “mystery shopping” expedition when buying a retirement home. It will not surprise readers to learn that much like the Dispatches programme on Channel 4 in 2012, it has found very mixed results and a lot of misinformation is still being provided.

Some retirement housing providers did make clear that there is an exit charge, while others failed to pass on key information. Most sellers seem reluctant to provide a copy of the lease until a commitment to buy has already been made. Much misinformation was provided.

A full copy of the Law Commission’s mystery shop report can be read HERE.

Tomorrow, we will cover the Law Commission’s investigation of retirement provider’s websites and then go on to the questions the Law Commission needs you to help answer.

Comments

  1. Michael Epstein says:

    May I offer my sincere congratulations to Sir Edward Davey on his New Year Honour.
    Along with others he put political differences aside to work tirelessly for the good of oppressed leaseholders.
    Who it was that nominated him has to remain secret, but I think we can safely rule out Vincent Tchenguiz!