RESIDENTS trapped in the leasehold scandal are willing to go to court if their demands for fairness are not met.

Leaseholders were boosted last year after confirmation that four house-builders were being investigated by the Competition and Markets Authority over the way leaseholds were sold.

They were Barratt Developments, Countryside Properties, Persimmon Homes and Taylor Wimpey.

Leasehold ownership, most commonly found in flats, means purchasing a property for the duration of a usually long-term lease rather than owning it outright.

Mike Carroll, who lives on Steinbeck Grange in Chapelford, is among those affected by the scandal on what residents say is a collective issue.

He has praised Warrington South Tory MP Andy Carter for raising the issue in Parliament and battling for residents on the matter, along with the National Leasehold Campaign.

Residents believe they were mis-sold their property by David Wilson Homes (DWH) – which is part of Barratt Developments.

Mr Carroll, who moved into his home in December 2008, says when deposits were placed there was never any mention of a property management company or leasehold and residents were placed ‘under duress’ to utilise one of the conveyancing firms put forward by DWH.

He is being charged management fees for communal areas on the estate, which he believes are unfair and unjustifiable, given that there is ‘nothing to manage’ and because all of the latest phases identical to Steinbeck Grange are exempt from any management contract.

Mr Carroll said: “The way that they (DWH) have treated us is absolutely abysmal.

“Dealing with this has been like a second job to me. The moment residents found out about this was approximately 12 months after purchase when conveyancers nominated by the developer all went bust, and after advice from DWH’s technical director to get a petition we thought this would be resolved.

“A petition was completed by 100 per cent of the development only for DWH to sell on the freehold to a third-party investor, where again they failed to disclose the collective fact that residents had been actively campaigning about being mis-sold their homes.

“Further to this all residents on the development have completed surveys highlighting that if DWH would have been transparent at the point of sale and disclosed all information surrounding the leasehold and management contract, there is no way that they would have continued with their purchases.”

Mr Carroll says he, along with other residents who were mis-sold their property, would be happy if they were given the freehold and made exempt from the management contract – and confirmed they are willing to go to court.

But Barratt Developments has issued a statement on the situation.

A spokesman said: “All of David Wilson Homes’ leases are designed and intended to be clear and transparent, and all customers were made aware of the leasehold nature of the properties and any management contracts prior to sale.

“We aim to provide all relevant information to our customers at first point of sale and through solicitors prior to exchange of contracts.

“All customers have access to independent legal advice throughout the purchase process.

“Management clauses exist to provide for the maintenance of common parking areas.

“The residents of Steinbeck Grange have the option to seek to exercise a right to manage over these areas, ensuring that no further management fees will be payable.”

However, the residents affected dispute this statement and state that DWH has failed to deal with the collective issue.

Mr Carter says the ‘catalogue of issues’ on Steinbeck Grange demonstrates the unfair practices which appear to have been widespread in the housing sector in relation to leasehold mis-selling and management charges.  

He added: “I’m pleased ministers are now moving forward with legislation as soon as parliamentary time allows.

“Since taking up this case over I have met with residents, developers and the regulators in a bid to try and bring the matter to a conclusion for families who have had their lives turned up aside down by unfair and questionable sales practices.

“Friday’s meeting between residents and the legal counsel for the Competition and Markets Authority has allowed those affected to speak directly with the people taking action in court against developers, sharing their experiences to help aid the legal proceedings.”