The Rich get Richer ( Even in Sheffield ) .

 Exclusive: The Tribune can reveal that Andrew Milne has threatened leaseholders with high court action. It ‘broke my heart’ one woman says

We first heard about the letters two weeks ago. Sheffield homeowners with leasehold properties were being contacted by a City of London solicitor, Andrew Milne — and many were feeling alarmed. As we began asking around we found more and more cases of people Milne has contacted. We soon realised that Milne had acquired freeholds to hundreds of properties this summer, mostly in west Sheffield.

There’s nothing unusual about the fact Milne has been getting in touch with leaseholders — in fact, it’s required by the Landlord and Tenant Act 1985, so people know where to send their ground rent. But that doesn’t appear to be Milne’s interest. Instead, he’s been looking to sell the freeholds on to the property owners. In some cases, Milne simply lists a high asking price, accompanied by several pages detailing how leasehold properties, without the freehold, are “not saleable”. In others, he alleges that covenants have been breached, and threatens High Court action if people don’t pay sums of £25,000 upwards to “settle the breach”.

Olivia Blake, the Labour MP for Sheffield Hallam (where most of these properties are based) has become sufficiently concerned about the nature of Milne’s communications that she spoke to The Tribune in strong terms. “The letters are very threatening,” Blake told us. “It’s very aggressive… it’s clearly aimed at people’s vulnerability as leaseholders.” She noted that “it’s really scary for some people who have expected to live comfortably, and then they’ve ended up with these demands and scaremongering.”

Blake has contacted the Secretary of State for Justice to raise the issue as a matter of urgency. And this morning, she tabled a series of parliamentary questions in response to Milne’s activities. These included asking Steve Reid, the Secretary of State for Housing, Communities and Local Government, about preventing freeholders from demanding disproportionate payments from leaseholders for historic breaches. 

After being presented with evidence of Milne’s communications, a spokesperson from the Ministry of Housing, Communities and Local Government told us: “Exploitative behaviour is completely unacceptable and should never be tolerated. Departmental officials are seeking further information in relation to the issues raised and have also raised this with the Leasehold Advisory Service, which we would encourage leaseholders to contact so they know their rights. We will be reforming the leasehold system so people can challenge unfair charges and are better protected from these predatory practices.”