LETTERS warning residents to change their home insurance are being posted to Bolton homes -- months before a new law will ban the practice.

The letters warn householders that they should change their home insurance to a specified company or buy the freehold.

Changes in leasehold and ground rent rules which will protect people's rights will be introduced later this year.

Bolton politicians have led the way in introducing the changes to the Commonhold and Leasehold Reform Bill 2002 in a bid stop landlords sending out the "threatening" letters.

Two years ago Astley Bridge councillor Stuart Lever took up the fight for residents after South Wales based The Compton Group sent out ground rent demands. A public meeting called by him attracted 250 concerned leaseholders -- a small portion of those believed to be affected.

Tenants in Astley Bridge, Sharples, Bradshaw, Great Lever and Heaton were asked switch their home insurance to a company specified by Neath-based The Compton Group or pay up to £500 to buy their freehold.

But today -- with the new legislation awaited -- Bolton North-east MP David Crausby said he was disgusted that homeowners are still receiving the "threatening" letters.

Retired heating engineer Maurice Davenport of Hawarden Street, Astley Bridge said: "I have just received another letter from this company and they say if I do not switch my insurance or buy the freehold they could begin procedures which would result in enforcement action. The alternative would be to buy the freehold for several hundred pounds. Currently I pay £2 a year ground rent -- I'm 68 years-old -- that doesn't balance."

Cllr Lever said: "These people threaten to take people's homes off them if they don't comply. They pick on vulnerable people who may comply with their demands because they think it is not worth the hassle to fight them. It is disgraceful.

"In a few months this practice will be outlawed and people throughout the country will benefit because of the stand we have taken in Bolton."

Mr Crausby admitted the process of implementing changes in the law was "a bit slow", but he added: "Hopefully it will be in force by the end of this summer. Clearly the insurance clause is about commission. I think it is shocking and will be raising the matter again in the house of Commons."

The new Commonhold and Leasehold Reform Bill will make it a statutory requirement for a landowner to notify every leaseholder that they have sold the land on to another company. The new law will also make it easier for owners to buy the freehold, cap the administration fees and stop the landowner demanding that home insurance must be taken with a certain company.

No one was available for comment on behalf of The Crompton Group.