Law commissions leasehold reform report

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    Law commissions leasehold reform report

    Seems big changes are on the cards with the recent recommendations, many BTL landlords like me will make considerable annual savings, we will see our property managed properly by our chosen management companies.
    Strangely this site has promoted a strange survey on twitter, taken by a multi million pound asset management company,
    with even stranger quotes from their so called leaseholders. The reform can only be a good thing for all England and Welsh leaseholders bringing us in line with the rest of the world.
    Any thoughts or comments?

    They're just recommendations


      They Certainly are atm.
      the government requested they find a way to
      make leasehold fairer for leaseholders and they have recommended 990 yr lease extension, this ultimately means common hold as ground rent will be a peppercorn. leasehold house sales will be banned.
      RTM and enfranchisement will be extended to mixed use buildings with 50% commercial floor space among many other recommendations. Don’t you think the government will act on them? After stating leaseholders have been cheated for years.


        They don't address in any way the real problem of leaseholds - which are often in fact exacerbated when lessees take control (and where there is a dominant majority or abusive lessee). Issues like transparency and integrity of accounts, prevention of backhanders, cost effective contracting beyond the ludicrous paper exercise that is S20, easier Tribunal processes.

        Yes some significant issues like leasehold houses will be addressed, but most of those issues involve lessees knowing buying into adverse contracts, not an inability to implement the law or to enforce existing contracts.

        This is all a mirage.


          IMO this reported survey below, is trying to pull the wool over our eyes, Iv struggled to find one happy leaseholder either BTL investors or residential who would not welcome Common hold.

’d among-leaseholders-over-plans-to-give-them-responsibility-for-apartment-block-safety/?fbclid=IwAR1f7lDZL5M5b7Be5p6wXx3g5v_uZqmRb1sImIxD Fkv6FSbz4eUV4lyljWo



            The Government will probably have to offer financial inducements to encourage developers to grant commonhold as opposed to leasehold, perhaps reductions in SDLT on the purchase of a new commonhold unit. Also significant education of purchasers to make them feel comfortable in buying into commonhold will need to take place. The publications do not suggest compulsion to the creation of commonhold by developers.

            If it does take hold I think existing leasehold will be seen as an impaired product and may underperform value wise compared to commonhold. For a group of lessees to enfranchise and acquire the freehold and then manage is far easier than acquiring the freehold and then converting to commonhold. Not that collective enfranchisement is a walk in the park


              The Ground rent income stream, ie doubling and linked increases are relatively new and were introduced by the big house builders to squeeze an extra point of a % Out of the ground rent sale after theY had marketed and sold off all the leasehold properties. This really should have been picked up and acted on by the government early on, I can’t see how they can scream to be reimbursed for an income that they made for themselves.


                The ground rent terms are set out in the draft lease and is reviewed by the solicitor the purchaser for a couple of months and agreed .

                based on that undertaking to pay the rent the developer then sells the freehold on. The purchaser relies on that covenant and pays accordingly

                a few year later some lessees argue that this is all terribly unfair and that the ground rent was not explained to them or it was all in legalese

                these contracts should stand and if the lessee feels that the terms were not properly explained then they should seek redress from those who advised - what has the developer done wrong - merely trying to get the most for their product is no different from anyone of us who seeks to sell their property for the best possible price . It is to be expected in a free market economy.

                there are problems with leasehold but the side show about ground rents distracts from the real problems and in many ways undermines the strength of the arguments about those matters in leasehold that needs to be addressed

                lenders have not helped by imposing limits on what ground rents should be - effectively blighting many properties - why should a ground rent of £350 per annum linked to the RPI on a flat worth £250k blight its sale prospects - it is absurd and a more thoughtful debate in what an onerous ground tent is needs to be had


                  i think I can say with some confidence that commonhold isnt exactly around the corner. Ive seen many blacks come under the spell of leaseholder management and it has been far from a panacea. In reality the managing team or person has to be something of a benevolent dictator because ultimately one view must triumph over others. Sometimes the correct decision is not the popular one. With no offence intended what is entailed in the management of a sizeable Estate is sufficiently complex to go beyond the expertise of lay people.




                      The choice of property title is decided by the builder or developer who wants to get the best price for selling a new property.

                      Most buyers need a mortgage loan to buy the property and the "Council of Mortgage Lenders" many years ago decided that it must be leasehold title for flats.

                      If you walk into any banks or building societies , the shop staff will tell you they can only offer loans for "leasehold" flats. They do not offer loans for flats under Commonhold title because there is no demand. So the builders won't offer Commonhold. The Housing Minister does not know why Commonhold is not used and it is because they have looked for the reason.


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