HOUSEHOLDERS are urged to act with caution if they feel under pressure from freeholders trying to fund new ways to make money.

Burnley MP Peter Pike, said recent cases at his surgery include claiming payments retrospectively for extensions or alterations made, in some cases by a previous owner, and specifying the specific insurer. A new Bill is soon to go before parliament to try to tackle the problems with leasehold and freehold.

Mr Pike said: "Most local leasehold properties on this land - unlike London and the South East - have long leases (999 year), low ground rents and minimal conditions.

"Every year I get a number of problems caused by new and ever remoter owners of local freehold land in the area.

"If people feel under pressure they should seek advice from either me, their solicitor, the citizens' advice bureau or a similar body.

"It may also, if the price is reasonable taking into account all legal and other costs, be sensible to buy the freehold. This can avoid problems at the time of any future sale.

"The key thing, however, is not to pay up just because you are afraid of the pressure. Do check that it is legal and fair."

Mr Pike questioned deputy Prime Minister John Prescott in the House as to whether problems with leasehold and freehold will be addressed in the new Bill.

Mr Prescott said: "While not all constituencies have problems with leasehold, Southport (where Mr Prescott fought as a candidate in 1966), certainly did. It is a matter of grave concern.

"We do not underestimate the difficulties and the legal complexities. However, one has to make a decision at the end of the day. We want to deal with all the ramifications.

"That is our intention in the Bill and it will be welcomed by all concerned."

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