Freeholders lose challenge to leasehold reform?

Does this not also apply to cars. I lease my car by making a down payment and a monthly charge on what is a wasting asset which i will return to the finance company at the expiry of the lease.

Using this logic, i should be able to just keep the carand cease making “ground rent” payments.

This rewrites the deal years after it was done. I dont think this is over yet 🙄

My cynical and paranoid self wonders where any ‘wealth tax’ will land; Leaseholders of Freeholders.

It would be a real pain to finally get a 990 year Lease extension with peppercorn ground rent only to discover that I’m now in the crosshairs of a 10 fold increase in Wealth Tax for my trouble..

Are share of freeholders where the freehold reversion interest is held by Residents Management Company registered at Companies House affected?

Reply to the comment left by Darren Peters at 28/10/2025 – 11:12
I think you would be affected although your wealth would onlu be1/n of the value of the freehold where n is the number of flats

Thank you Tim.

In my situation there are three blocks of about 30 flats each and the Titles are registered for the individual block but the residue of a Superior Lease transferred the FH reversion to the whole common area registered with Absolute title to the RMC. The leases not surrendered and is an exempt charitable trust with individual Deeds of Trust to the tripartite underleases

So 1/n of the block of 30 or 1/n of total of 90 and each flat worth about £150k.

Reply to the comment left by Kizzie at 28/10/2025 – 17:22
That sounds strange. If there are 3 separate title deeds for the blocks, i think there should perhaps be separate management rather than a single over the whole estate. It may be different for charities which isnt my area 🤔

Reply to Tim Peters
So it would be based on each Leaseholder’s Deed of Trust to the tripartite underlease .
Each DOT sets out the amount of each leaseholder ‘s premium they paid to purchase their underlease to their Unit
in the block in which their Title is registered.

Once long leaseholds have been sold, the freehold has no real value apart from the total of any ground rents and the current value of any prospect of future lease extension payments (which approaches zero if the leases are over 100 years long). However, some companies collect freeholds to get the management fees, provided the leaseholders haven’t got a resident management company or exercised RTM, or to add an extra floor or two of market sale flats on top of the building under permitted development rights.

So I don’t think leaseholders who own share of freehold need to have any concerns about a wealth tax on the freehold share as well as their flat itself. (And not many flats are worth £10m.)
https://www.instituteforgovernment.org.uk/explainer/wealth-taxes

You may, however, be thinking about the proposal to replace SDLT with National Property Tax. See the summary here: https://hoa.org.uk/news/new-property-tax/.

Thank you Kate. This has hopefully clarified the situation for share of freeholders re wealth tax.

In my situation the management co is a RMC with its interest registered in my
absolute title to the demise ,the flat “held by or in trust for the Lessor who is an exempt charity “ and jointly with other lease-
holders the Superior Lease to common areas
“held by or in trust for the transferors who are exempt charities “ and jointly share of freehold reversion to the RMC the transfer
covenants the RMCis a trust and exempt charity provides that the sc, estate sc, Headlease costs and block insurance is paid to the RMC acting obh of the Lessor and as separate covenant obh the individual Lessee.

Will look up the SDLT link. Thank you again.