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June 2021

CMA Leasehold Investigation – Notification of Announcement

The CA campaign to bring more fairness to leaseholders has another victory with Persimmon and others having to remove doubling ground rent and sell freeholds to leaseholders for £2,000 or less after a Competitions and Markets Authority investigation using the CA evidence in our home buying experience survey which proved that less than 4% of home movers were given the information under Consumer Protection From Unfair Trading Regulations.  See the details below of the undertaking made by Aviva and Persimmon – hopefully, more will follow.  You will want to ensure that your teams are aware.  Further details are in the links:

Undertakings accepted from Aviva and Persimmon; consultation letters issued to investment firms

23 June 2021: Aviva and Persimmon have formally committed to making changes for the benefit of leaseholders. Aviva will remove from leasehold contracts certain clauses which were doubling the ground rents payable by leaseholders. It will also remove terms that were originally doubling clauses and have been converted into RPI-based ground rent terms and repay homeowners who were affected by these doubling ground rent clauses.

Persimmon will offer leasehold house owners the option to buy the freehold of their property at a discount, better reflecting what they expected when they originally bought their house, and to make repayments to certain homeowners who have already purchased their freeholds. Persimmon has also agreed to extend the timeframe that prospective buyers are given to exchange contracts after reserving a property and to provide people with more upfront information about the annual costs of buying a home.

The CMA has also written to investment groups, Brigante Properties, and Abacus Land and Adriatic Land, setting out its concerns and requiring them to remove doubling ground rent terms from their contracts. These investment groups now have the opportunity to respond to the CMA’s detailed concerns.

Lender COT Cut Off Times – Stamp Duty deadline

Please see the list below detailing the lenders deadlines for the request of funds for the 30thJune 2021 Stamp Duty deadline:

 

Lender COT Stamp duty Deadline
Accord 23rd June 2021
ATOM 17th June 2021
Bank of China 17th June 2021
Bank of Scotland 23rd June 2021
Barclays 23rd June 2021
Birmingham Midshires 23rd June 2021
Clydesdale Bank 23rd June 2021
Precise 25th June 2021
First Direct 17th June 2021
Halifax 23rd June 2021
Hinckley & Rugby 17th June 2021
HSBC 21st June 2021
Kent Reliance 23rd June 2021
Leeds B/Soc 23rd June 2021
Lloyds 23rd June 2021
Molo 17th June 2021
Nationwide 23rd June 2021
Natwest 23rd June 2021
Newcastle 17th June 2021
Pepper 21st June 2021
Royal Bank of Scotland 23rd June 2021
Santander 23rd June 2021
Skipton 21st June 2021
Scottish Widows 23rd June 2021
The Mortgage Works 21st June 2021
TSB 17th June 2021
Westbrom 23rd June 2021
Bank of Ireland 24th June 2021
Bluestone 24th June 2021
Paragon 22nd June 2021

 

Due to the busy times, we recommend setting up your completions using ‘Code for Completion’ by setting the legal completion process the day before completion and agreeing with your fellow Conveyancers where possible, as this will ensure a smooth completion process.

CLC Regulatory Fee Setting Consultation & Webinar

The CLC have recently published their consultation on Regulatory Fee Setting which can be accessed via the below link:

https://www.clc-uk.org/wp-content/uploads/2021/05/Fee-Setting-Consultation-Paper-May-2021-FINAL.pdf

The CLC will also be hosting a webinar on Wednesday the 16th of June at 12:30pm to provide more information on the proposed changes and the CLC plans to move to a polluter pays system for meeting the costs of the Legal Ombudsmen.

To register for the event, please click the link below:

https://zoom.us/webinar/register/WN_pR77KYouR7-HrFEDKoHfDg

Bank of England Automated Payment Models Project

We have been contacted by the Bank of England Project Manager who has asked if some of our larger member firms would be interested in providing their thoughts on their current work on enabling automated payment models. More Information on this project:

ISO 20022 Governance Discussion Guide v1.0 31 May 2021

Please could you let us know if you are interested in providing your feedback and we will make the necessary introductions.

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