Justin Madders MP told the Commons last week that leasehold sector debt collectors JB Leitch loaded a bill for unpaid ground rents by 222%.
JB Leitch, a Liverpool legal firm, is routinely engaged by ground rent investors such as Long Harbour and the Tchenguiz group.
Mr Madders, the Labour MP for Ellesmere Port and Neston, said:
“Constituents of mine who are leaseholders recently received a letter from a firm of solicitors called JB Leitch about some outstanding ground rent.
“What was particularly outrageous about the letter was that it included additional fees for late payment equivalent to 222% of the original ground rent charge, despite this being the first correspondence that my constituents had received on the matter.
“That is typical of the way in which leaseholders are being exploited in this country. May we please have a debate on how we can stamp out these terrible practices?”
Leader of the House William Rees-Mogg replied:
“The Government are well aware of that issue, and I think that it might well be covered by legislation that is in the pipeline. I think that that would be the occasion on which to debate it.”
LKP has raised the issue of JB Leitch’s very high fees on leasehold debts and questioned whether the firm is remunerated at all by the freeholder employing them, or is solely remunerated from whatever fees are paid by the debtor.
JB Leitch has been an assiduous sponsor of the conferences of the taxpayer funded Leasehold Advisory Service (set up to protect leaseholders):
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