BBC R4 MoneyBox hears that a CMA mis-selling ruling could see leaseholders suing plc house builders. Hope so!

Sebastian O’Kelly, director of LKP, told the BBC R4 MoneyBox programme this morning that there was at last a chance of bringing the leasehold scandal to the door of the house builders.

It the Competition and Markets Authority rules that there was mis-selling then “the goal is open” for compensation class actions by leaseholders who have ended up in blighted, unsellable homes.

We believe that there are around 12,000 new leasehold homes, flats and houses, with ground rents that double within 15 years and around 100,000 in total where ground rents are in excess of 0.1% of the purchase price and won’t get mortgages.

Mr O’Kelly said:

“From the start of this scandal which we brought to public attention two and half years ago, house builders have been saying: take legal action against your conveyancing solicitors.

“That is, take legal action against the stooge solicitors that we recommended for failing to spot the traps in the lease that we wrote. This is a nonsense.”

Questioned by presenter Paul Lewis that suing plc house builders was a tall order, Mr O’Kelly said that underestimating how well organised leaseholders are these days.

“Leaseholders are organised now and have an excellent organisation in the National Leasehold Campaign founded by Katie Kendrick, which has 14,000 members. Class actions could be organised.”

The programme heard from Cathy in Bolton who has a Taylor Wimpey leasehold house where the ground rent is £250pa and the service charges £200pa – having started at £80pa.