Homeowners left 'scared' by 'aggressive' freeholder

Homeowners left 'scared' by 'aggressive' freeholder

Homeowners in Sheffield have received letters threatening High Court legal action following the purchase of their properties’ freeholds by a solicitor, a situation described by those affected as both intimidating and confrontational. The acquisition, involving nearly 300 homes, took place during an auction in the summer where Andrew Milne acquired the freeholds for approximately £320 each. After the purchase, letters were sent to some residents alleging lease violations tied to unauthorized alterations, prompting at least one homeowner to pay £25,000 to repurchase the lease in order to proceed with selling their property. While Milne has not responded to inquiries from the BBC, his law firm has denied any misconduct.

Understanding the leasehold system is crucial to this controversy. Leasehold ownership grants the right to occupy a property—either a house or flat—for a set duration, after which ownership returns to the freeholder who owns the land. Lease agreements specify whether homeowners must obtain permission to make modifications, responsibility for maintenance, and management of issues such as disruptive neighbors. Violating lease terms can lead to legal action and even revocation of the lease. Additionally, freeholders have the authority to charge ground rent and oversee service fees. Notably, leasehold properties accounted for 44% of housing transactions in Sheffield last year, a stark contrast with the national average of just 6%.

Several individuals have shared distressing accounts of their interactions with Mr Milne. One Sheffield resident, Chaunsey Marshall, described receiving a letter offering to sell back the freehold at an allegedly discounted rate of £5,000 plus fees. She said, “It felt almost scaremongering to me. There is almost aggression behind what he was saying – offering a fixed price, quick deadlines, 14-day turnarounds, inflated numbers.” Those who declined to accept such offers reportedly faced threats of lease forfeiture and claims against unauthorized modifications, such as loft conversions. Letters seen by the BBC warned homeowners that breaches could lead to the forfeiture of leases and demands for higher payments to acquire the freehold.

Further illustrating the impact, a woman who had carried out a loft conversion at her property in 2022 paid Mr Milne £25,000 to resolve her leasehold issues while selling her home. Speaking anonymously, she described the ordeal as frightening: “He’s a solicitor, he absolutely floored me… I was in the process of selling my house, and I needed to get rid of this man. I needed peace… I’m still losing sleep over it.” The situation has spurred residents to hold meetings across Sheffield, a city with one of the highest rates of leasehold properties in the UK, a legacy of its industrial history and the patterns of land ownership by aristocratic estates and other large institutions. This leasehold prevalence is particularly pronounced in areas like the S3 postcode, where up to 72% of housing stock is leasehold, and in newer city centre apartment developments.

Daniel Timms, a reporter from the Sheffield Tribune who first brought the story to public attention, explained how Mr Milne purchased the freeholds in four auction lots for an amount just shy of £100,000. He noted, “It’s been terrifying for people. They’ve been scared to go to their homes. They’ve been worried Milne might be outside, in some cases.” The legal background of Milne, as a solicitor based in the City of London, has intensified residents’ fears. In recent years, legislative reforms have targeted the leasehold system: the previous Conservative government abolished leasehold for new-build houses in 2024, though flats remain under this structure. Meanwhile, the Labour Party has proposed gradually replacing leasehold with a “commonhold” system, acknowledging that addressing the complexities of existing multi-owner freeholds poses significant challenges

Read the full article from The BBC here: Read More