This is a news roundup of all articles relating to the Leaseholder Action, highlighting key developments and updates in the case. Stay informed about the latest legal proceedings, stakeholder responses, and potential impacts on leaseholders.
The Intermediary: Law firm Velitor, backed by Balance Legal Capital LLP, is helping leasehold homeowners reclaim hidden insurance commissions unlawfully charged by freeholders and brokers. This legal action, seen as a significant step in addressing a national scandal, aims to recover secret fees that have cost leaseholders millions.
Read the full article by The Intermediary here
Facilities Management Magazine: A 2024 Financial Conduct Authority report revealed that leaseholders paid £1.6 billion in insurance premiums between 2019 and 2022, with hidden commissions averaging 30%. Velitor’s Head of Real Estate Litigation, Liam Spender, recovered a £100,000 commission, highlighting a broader issue.
Read the full article by Fm Industry here
BBC: In a gripping interview on BBC Breakfast, Liam Spender, Head of Real Estate Litigation at Velitor Law, discusses the issue affecting millions of leaseholders across England and Wales. Homeowners have been unknowingly paying secret insurance commissions to their freeholders, inflating their premiums. Velitor Law, with funding from Balance Legal Capital LLP, is spearheading a no win, no fee claim to help leaseholders reclaim these unlawful charges. Watch the full video here on YouTube
Insurance Post: The class action, launched by a City lawyer and leaseholder, Liam Spender, is backed by law firm Velitor, which has secured funding for the no win, no fee claims from Balance Legal Capital LLP. Spender, who works for Velitor as counsel and head of real estate litigation, has been challenging insurance costs and other service charges.
Read the full article by Insurance Post here
Mortgage Finance Gazette: The Financial Conduct Authority found leaseholders paid hidden commissions of up to 60%, significantly inflating premiums. Spender, who previously reclaimed £100,000 in such commissions, aims to recover these funds for leaseholders.
Read the full article by Mortgage Finance Gazette
News on the Block: Secret commissions will become unlawful as a result of the Leasehold and Freehold Reform Act 2024. However, the Act is not yet in force and is not retrospective. This proposed group action is currently the only
way for leaseholders who were misled about secret commissions for years, before the change in the law, to recover their money.
Read the full article by News on the Block
