The Council of Mortgage Lenders has claimed that high service charges could force landlords owning ex-council property to sell up. This comes after the Department for Communities and Local Government (DCLG) said that some ex-council leaseholders were beginning to face the high charges, and the £10,000 upper limit is no longer effective. The DCLG has highlighted over 4,000 leaseholders in 8 London boroughs that face bills of £10,000 or more. At least 400 face bills of more than £20,000 and some are more than £40,000. The Council of Mortgage Lenders believe that because most of the property that is affected is in tower blocks, landlords will be faced with the choice of either selling up, paying up or asking to get collective ownership of the freehold.
Our view
Organisations who took on these council properties did so to make money, we assume they have done so. In business, you have to take the rough with the smooth.