Homeowners left ‘scared’ by ‘aggressive’ freeholder

Letters sent to homeowners in Sheffield threatening High Court legal action after a solicitor bought the freehold for their houses have been described by recipients as “scaremongering” and “aggressive”.

As first reported by the Sheffield Tribune, Andrew Milne bought the freehold for almost 300 homes at auction in the summer at a cost of about £320 each.

He then sent letters to some tenants claiming alterations to their properties had breached the lease’s terms, with one woman paying £25,000 to him to buy back the lease so she could sell up.

Mr Milne has not responded to any questions put to him by the BBC, but his law firm previously told The Tribune it denied every allegation of impropriety.

A leasehold property – which can be a house or a flat – is owned only for a fixed period of time.

The purchaser has a right to occupy the building for that period and can extend the lease, but when that lease comes to an end, ownership reverts to a freeholder, who owns the land the property is built on.

The terms of a lease include whether a homeowner needs permission to make alterations and who has responsibility for repairs, maintenance and even dealing with problem neighbours.

Breaking the conditions of a lease can result in legal action, and a lease can be revoked.

Meanwhile, a freeholder can charge for ground rent and service fees.

About 44% of housing stock sold in Sheffield last year was leasehold, compared to a national average of just 6%.

Chaunsey Marshall, in Sheffield, told the BBC she had received a letter from London-based Mr Milne, who offered her the chance to buy back the freehold at a “special” rate of £5,000 plus fees.

Ms Marshall 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.”

Others who did not respond to accept the offer said they were then threatened with forfeiture of their lease and pursued for breaches such as building loft conversions or extensions.

The BBC has seen letters sent to residents from Mr Milne which stated that if the homeowner was “in breach of any of the provisions of the lease, I reserve the right to forfeit your lease and also ask a far greater sum for any sale of the freehold”.

Ms Marshall said: “If we didn’t reach out within 14 days and then close in an additional 14 days on the back of that, as well as pay all of his legal fees in the process, then that was going to go up to £25,000 and he was going to come after us for breaches in our lease agreement and restrictive covenants.”

One woman who was in the process of selling her home agreed to pay Mr Milne £25,000 for the freehold after a loft conversion was carried out at her property in 2022.

Speaking to the BBC on condition of anonymity, she said: “It was just scary. He’s a solicitor, he absolutely floored me.

“So I weighed the options up. 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. This man has made my life hell.

“At first, I felt like a victim, like I was on my own. Then, through social media…I went, ‘oh my God, I’m not the first. I am not on my own’.”

One letter, headlined “Demolition Notice”, claimed the resident had made “numerous unauthorised alterations” which were required to be demolished, otherwise it stated that the resident would face High Court proceedings.

Draft particulars, outlining a potential claim from Mr Milne against the homeowners, were also sent to people listing them as defendants.

One of these said alterations had been “clearly shown” using Google Earth satellite imagery, which Mr Milne said was a “breach of the aforesaid covenant”.

Video taken from one home in Sheffield showed an associate with Mr Milne taking photos of properties, which Ms Marshall believed was to spot potential extensions.

Ms Marshall has denied any breaches and has provided the BBC with documents proving work was carried out before she bought the property.

Meetings between residents who have been affected have taken place across Sheffield, which, as a city, has one of the highest proportions of leasehold properties in the country.

The figures – as high as 72% in the S3 postcode area, according to estate agents Reeds Rains – are linked to Sheffield’s industrial past, when many workers’ houses were developed on land owned by aristocratic estates, the church and major employers, although the freeholds have often changed hands numerous times over the years.

More recently, apartment developments in the city centre have been predominantly leasehold.

Daniel Timms, who worked on the story with other journalists at the Sheffield Tribune, said Mr Milne had bought the freehold for at least 258 properties, costing £317.83 each, in four auction lots.

“He spent a little under £100,000 for the lot,” he explained.

“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.

“It’s particularly added to by the fact Milne is himself a solicitor, with offices in the City of London.

“When you hear that someone with those legal credentials is breaking a serious court claim against you, it’s obviously terrifying for people.”

The last Conservative government passed legislation to reform the leasehold system in 2024. Leasehold was abolished for new-build houses – but not flats.

Labour has said it would attempt to phase out leasehold entirely in favour of a “commonhold” system, although it warned that practical challenges with existing multi-owner freeholds would present themselves.