Thousands of buy-to-let landlords could be in line to claim millions back from estate agents as a result of a landmark High Court ruling yesterday against Foxtons.
Mr Justice Mann ruled that leasing agreements made by Foxtons, which operates mainly in London, unfairly overcharged commission to landlords. The Judge described Foxtons’ agreements as traps and timebombs.
Foxtons, which lets some of the most expensive property in Central London, charged customers 11% commission when a tenant continued to occupy the property for longer than the initial term of the lease, and an additional 2.5% commission payment if a tenant agreed to buy the property from the owner.
Foxtons was among many letting agents in London and the South East to run these agreements. As a result of the court ruling, landlords across the country can now issue proceedings to recover overpaid charges for the past 14 years on existing contracts.
The Times, Sunday Telegraph