Just heard about this and wonder if anyone knows if and when it will come into effect? I have also heard it could take years to be finalised. Thank you.
New Leasehold Legislation
Collapse
X
-
What legislation is this.
You mean new legislation to to allow lessees to enforce existing legislation and leases?
Like FH not stealing, charging only according to the lease, not taking backhanders, providing documents the law already says must be provided, like maintaining the property according to the leases and not making extra money out of that whether directly or indirectly.... and so on. And legislation that imposes on the court system the obligation to obey the law (and even to exist as a functioning entity that can be accessed)?
Or is it some irrelevant guff about doubling ground rents or other such diversionary tosh?
-
On 11 January 2021, Robert Jenrick, the Secretary of State said leasehold reform would be tackled through two pieces of legislation.
A Bill in the forthcoming session will “set future ground rents to zero”. This will also apply to retirement properties, but commencement in respect of retirement properties will be delayed for a period.
Future legislation will:- Reform the process of enfranchisement valuation used to calculate the cost of extending a lease or buying the freehold.
- Abolish marriage value.
- Cap the treatment of ground rents at 0.1% of the freehold value and prescribe rates for the calculations at market value. An online calculator will simplify and standardise the process of enfranchisement.
- Keep existing discounts for improvements made by leaseholders and security of tenure.
- Introduce a separate valuation method for low-value properties.
- Give leaseholders of flats and houses the same right to extend their lease agreements “as often as they wish, at zero ground rent, for a term of 990 years”.
- Allow for redevelopment breaks during the last 12 months of the original lease, or the last five years of each period of 90 years of the extension to continue, “subject to existing safeguards and compensation”.
- Enable leaseholders, where they already have a long lease, to buy out the ground rent without having to extend the lease term.
Responses to the Law Commission’s remaining recommendations on enfranchisement, commonhold and right to manage will be issued “in due course” and translated into law “as soon as possible”.
On the timing of future legislation, Lord Greenhalgh, the Minister responsible for leasehold, responded to questions on 5 January 2021 and said:
We need primary legislation. I have been told by Professor Hopkins, who was in charge of the Law Commission work, that the preparations to get primary legislation ready for consideration by noble Lords will take approximately one year, so we are probably talking about the third Session.
https://commonslibrary.parliament.uk...and-and-wales/
published wednesday 20 Jan 2021.
- 1 like
Comment
-
Personally, I wouldn't hold my breath waiting for any sort of leasehold reform that will genuinely benefit leaseholders - especially with a Tory government with a large majority in power.
There is some possibility of the devolved governments of Scotland, Wales and Northern Ireland introducing beneficial legislation at some point in the future, but I don't expect even that to happen any time soon.
I doubt that Westminster will do anything more than potentially address a few perceived issues for new leaseholds at present. Removing the value from leaseholds would give the freeholders reasonable grounds to demand some sort of compensation from the government (which the government currently can't afford to pay) and might upset potential Tory donors.
Comment
-
Yes. Although many of the very worst freeholders are either a) City Councils or b) fellow majority lessees in RTMs/RMCs neither of whom are necessarily Eton Tory Voters. I'd suspect that those most badly affected by the dismal failure of current leasehold law are in a majority Tory Voters as well -- so I'm not that sure about the political-sides argument. I don't see meaningful reform featuring on the manifestos of any other parties either.
- 1 like
Comment
-
I agree - although I think that councils and "fellow majority lessees in RTMs/RMCs" are more likely to be poor freeholders purely because they can't be held to account as easily as independent private freeholders (not that the latter is always easy!).
This is one of the worrying thinks about supposed 'forthcoming' leasehold reform - there is a misplaced idea that leaseholders are better off if they all have an equal share of a freehold.
Comment
Latest Activity
Collapse
-
I have a bit of an issue with my neighbours leaving (constantly) the hallways in the shared areas for basically an extension of storage of their flat. During lockdown it became worse, and i felt as if it wasn't really appropriate, but now I just think its becoming really inconsiderate. One day i actually...
-
Channel: Long Leasehold Questions
19-04-2021, 15:09 PM -
-
by ash72Whoever manages the property should notify the T's of the fire regulations and that the entrance is a fire escape, and tell them that any items left would be removed without notice. I have had the same issue with a T, after repeatedly telling them, I had to take action by throwing their items outside...
-
Channel: Residential Letting Questions
19-04-2021, 17:15 PM -
-
by Hudson01As above, the manager of the building, and/or management company, they would need a seriously low IQ, to not understand the dangers of storing crap outside the flat.
-
Channel: Residential Letting Questions
19-04-2021, 16:52 PM -
-
by DebsmithCan anyone advise or has experience of the following: we have a gardening team that comes in x2 a month. Every time they do some new planting, we have issues in watering... there are no ground floor properties with outside taps who can help. We do have an oustide tap which apparently was disconnected;...
-
Channel: Long Leasehold Questions
19-04-2021, 11:03 AM -
-
Reply to water for communal gardensby ramYou do not have issues in watering, the gardening team has the problem. Tell the Managing agent to tell the gardening team to get a few 5 lt plastic bottles see
https://www.amazon.co.uk/Inpress-Pla...ogshopuk-21&li...-
Channel: Long Leasehold Questions
19-04-2021, 16:27 PM -
-
by roywAgree with the above if they're being awkward but they might not have realised you don't like it so definitely a polite word first. Point out the fire hazard if you have to evacuate in a hurry in the dark.
-
Channel: Residential Letting Questions
19-04-2021, 16:14 PM -
-
by ramYou are not usually allowed to store ANYTHING on property that does not belong to you or you are not renting, and that includes hall, stairways and stair landings.
The Manager of the buildng ( not the letting agents ) should be contacted and told the leaseholders / renters are breach the lease....-
Channel: Residential Letting Questions
19-04-2021, 16:13 PM -
-
by JK0I had a neighbour who did this. His items found their way into my car boot in the small hours, and thence to the tip.
-
Channel: Residential Letting Questions
19-04-2021, 15:20 PM -
-
Reply to water for communal gardensby roywWater companies are usually helpful when there's cash in it for them. I would expect them to put a water supply in (they do for field troughs) but obviously you will be charged for it. Might be cheaper to collect water from gutters.
-
Channel: Long Leasehold Questions
19-04-2021, 13:00 PM -
-
by thenunnHello all, Im new here and hoping someone may be able to help me . I am one of three directors of a RMC. With this years service charge we have had to ask for an additional amount due to building survey showing works required. Obviously leasees are not happy , though most who have contacted the MA now...
-
Channel: Long Leasehold Questions
11-04-2021, 17:05 PM -
Comment