The Mayor of London has called for new reforms for leaseholders. He also asked ministers to speed up the overhaul of the system for leaseholds for home buyers in the capital. In the recent Law Commission report, there has been a lot of discussion about reverting to a commonhold type of system. There have also been recent reforms to the Right to Manage. We contributed towards the reforms and believe that the law is going in the right direction.
A recent estimate states that a third of London homes and over 90% of new build ownership is on a leasehold basis. Many leaseholders find it a complex and confusing form of home ownership.
We understand that the Mayor has called for a wholesale reform of leasehold. This includes a long term shift towards alternative tenures such as commonhold. The Law Commission is looking into the commonhold question over the next few years and they welcome your views.
In the meantime, we understand that he is working with London’s leaseholders. This is to give them access to high-quality information about their rights and obligations. He has also put together a guide for leasehold property purchasers. The information in the Guide covers a range of subjects. It ranges from the difference between leasehold, freehold and renting as well as advice on buying the freehold on a block of flats. It even covers the pursuit of Tribunal proceedings against the freeholder in an enfranchisement agreement.
We have produced our own guide to this effect, please do not hesitate to read through this on our website.
This all comes after recent studies found that 94% of leaseholders regretted buying leasehold properties. 65% also said they would like more information on their rights, liabilities, and responsibilities.
