Maria Caulfield MP is supporting a proposed new law the Ten-Minute Rule Motion ‘Freehold Properties (Management Charges)’ which would give greater transparency to leaseholders on what management charges for their properties are spent on.
The motion would require landlords to provide accounts of management charges payable under section 19 of the Leasehold Reform Act 1967 to freehold property owners; and for connected purposes.
Estate management charges, as the name suggests, allows the landlord to collect money in relation to the retention of some degree of management control as well as control over amenities and common areas in relation to the freehold houses on the land that had been sold to the leaseholders. As it stands, the scheme is only enforceable by landlords. Freeholders of individual dwellings within the ‘estate’ have no right to know where there money is being spent nor rights of redress or to enforce action when breaches of the scheme occur. This would change that by requiring landlords to provide accounts of management charges and therefore create greater transparency and accountability.
Maria Caulfield MP said “Some management companies and landlords serve their leaseholders well and keep them informed about what the money collected from them is spent on. However, there are some who collect large sums of money from leaseholders who see little benefit in return. The law as it stands prevents leaseholders from seeing where their money is going, which I believe is wrong.”
“I am supporting the Ten-Minute Rule Motion ‘Freehold Properties (Management Charges)’ to ensure that leaseholders have greater transparency to be able to see where their money is going as this will be a benefit to all of the leaseholders in the Lewes constituency.”