Leasehold reform recommendations published

by Property 118

15:35 PM, 21st July 2020
About 2 weeks ago

Leasehold reform recommendations published

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Leasehold reform recommendations published

The Law Commission of England and Wales has published recommendations to transform home ownership. It has been estimated there are at least 4.3 million leasehold homes in England alone. If enacted our reforms would help those owners and pave the way for a system where flats are sold with freehold title (as part of a commonhold).

These reforms work in tandem with planned changes from the Government to create fit-for-purpose home ownership across England and Wales. The Commission’s reforms will lay the foundations for future home ownership to be freehold and tackle some key issues that existing leaseholders currently face.

This would be done by:

Reinvigorating commonhold which allows people to own a flat forever, with a freehold title and no landlord  as an option to replace leasehold for newly-built flats. Recommended reforms would also give leaseholders a route out of leasehold by making it easier to convert to commonhold.

Improving the current system for existing leaseholders by:

    • Improving the process by which leaseholders can buy the freehold or extend their lease (“enfranchisement”). Our recommendations would create an improved enfranchisement regime that would be simpler and cheaper for leaseholders in flats and houses.
    • Making it easier and cheaper for leaseholders to take over the management of their building without buying the freehold, by exercising the right to manage (“RTM”). The RTM lets leaseholders take control of services, repairs, maintenance, improvements, and insurance.


Comments

BernieW

12:29 PM, 22nd July 2020
About 2 weeks ago

The contents of the long-awaited Law Commission report are to be welcomed. When ... if ... those recommendations become law, they will make life easier and fairer for leaseholders. They will also make the process to acquire Right To Manage easier and less likely to fail over some minor procedural blunder. And buying the freehold will become easier too - and more widespread.
I also welcome the proposals for reinvigorating commonhold - which is seen as the alternative to leasehold. That will be a fairer system, if revamped correctly.
However, commonhold won't answer the majority of residential problems - as they are created by dodgy landlords, incompetent agents and/or equally unscrupulous leaseholders. They may be in the minority - but they will always be there - leasehold or commonhold.

Faz

2:04 AM, 23rd July 2020
About 2 weeks ago

Thanks Bernie, it would be great to see policy to officially go in this line and backed up by law.

Question for you
I have recently purchased a lease hold flat and I occupy the first floor of a house that has been split into two. My lease stipulates that I lease the inside of the first floor (only). If I were to acquire a share in the freehold would I then be able to extend into the loft space?

BernieW

13:46 PM, 23rd July 2020
About 2 weeks ago

Reply to the comment left by Faz at 23/07/2020 - 02:04
Purchasing a 'share of freehold' (via a share of the freehold company, usually) does not change the terms of the existing lease. The two things are sperate and mutually exclusive.
In order to extend into the loft space, you would need agreement from 'the freeholder' and a Deed of Variation would be needed. That might be easier to achieve if you also a joint/shred freeholder - but is by no mean guaranteed.
Happy to discuss.

Faz

16:42 PM, 24th July 2020
About 2 weeks ago

Reply to the comment left by BernieW at 23/07/2020 - 13:46
Thanks Bernie, I guys its one thing at a time however yes I would like to discuss further. How do I contact you?

Bob

8:42 AM, 25th July 2020
About 2 weeks ago

I have bought a flat was given a share of freehold certificate duly signed by director and secretary of the company that hold the freehold, originally four people had both the freehold share of six flats , i bought one of the flat without share of freehold.and money was deposited in the company account...problem is that especially one freeholder refuses to accept the sale and has intigated two others, including one who has signed, to support him where do I stand

Jay James

14:15 PM, 25th July 2020
About 2 weeks ago

Reply to the comment left by Bob at 25/07/2020 - 08:42
Forgive me if I am missing something, but it seems that you are contradicting yourself. At the outset you said you were given a certificate for a share of the freehold yet in the last three lines you say that three freehold sharers are objecting to the sale. This appears to be a contradiction because you seem to already have a share of the freehold.
---
Whatever the case, you need to have a good read of the company articles.
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BernieW

17:30 PM, 27th July 2020
About A week ago

Reply to the comment left by Faz at 24/07/2020 - 16:42
Either google my name, or email Bernie @ BernieWales .co.uk

BernieW

17:32 PM, 27th July 2020
About A week ago

Reply to the comment left by Bob at 25/07/2020 - 08:42
The paperwork needs to be read carefully by a leasehold adviser. The answer will be in the paperwork detail.


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