BBC Investigation Reveals Widespread Overcharging by Leasehold Management Company
A BBC News investigation has uncovered systematic overcharging by Assethold, a freeholder managing hundreds of properties across England and Wales, causing significant financial and emotional distress to leaseholders.
The investigation examined approximately 140 court tribunals and found that judges have assessed Assethold as having overcharged homeowners by nearly £1.2 million. Leaseholders report dramatic increases in service charges, with some experiencing rises of over 500% in just a few years.
Sue Robertson, a leaseholder in Worthing, exemplifies the struggles faced by many. Her annual service charge jumped from £750 in 2019 to £3,198 in 2023 after Assethold acquired her property’s freehold. The dramatic increase, coupled with seemingly arbitrary charges, led her to experience severe anxiety and even attempt suicide.
Specific questionable charges uncovered in the investigation include:
– £719 for key cutting
– £500 for cleaning a small doormat area
– £300 for cleaning council bins
– £135 for changing two light bulbs
– £4,500 for roof repairs with minimal work performed
The management company, Eagerstates (owned by the same family as Assethold), frequently uses a contractor called Superior Facilities Maintenance (SFM), whose practices have been repeatedly questioned. The BBC discovered that SFM hasn’t submitted mandatory company accounts, which is a criminal offense.
Leaseholders like Jane Steel and Raymond Shaw have meticulously documented inflated charges and questionable billing practices. In one instance, a block of 80 flats saw its service charge rise from £60,000 to £250,000 in just three years.
The tribunal system offers limited recourse for leaseholders. While judges have criticized Assethold’s practices and awarded significant refunds in some cases, the company can still threaten forfeiture – potentially seizing a property if full payment isn’t made.
Assethold has disputed many of the allegations, claiming charges reflect “essential infrastructure upgrades” and that all contractors are legitimate. However, the mounting evidence suggests systematic overcharging.
The government has announced plans to overhaul the leasehold system by the end of the current Parliament. The Property Institute is calling for mandatory regulation of building managers, which is not currently included in proposed legislation.
Some leaseholders, like Sue and her neighbor James, have found relief by successfully challenging Assethold’s ownership and seeking to purchase their freehold. Others continue to fight against what they perceive as exploitative practices.
The investigation highlights the vulnerable position of leaseholders and the urgent need for more robust protections and oversight in property management.
