Proposed changes to Leasehold Property
Many families that remain stuck in leasehold homes now start to see the light at the end of the tunnel as government advisers laid out a raft of proposals which would make it easier for leaseholders to either purchase their freehold, extend their lease or eliminate their ground rents.
A few of the many proposals laid out include:-
- Giving homeowners the right to a lease extension for a term if 990 years, in place of shorter extensions that are given of 90 or 50 years .
- It has also been recommended that there should be no on-going ground rent under this extended lease, and landlords shouldn’t be able to use the lease extension process to impose new obligations.
- A new right for leaseholders with very long leases to buy out the ground rent under their lease without also having to extend the length of their lease.
- It has also called for a rules change so that leaseholders can extend their lease or buy their freehold immediately after buying their home rather than having to wait two years as they have to now.
- That the law is changed so that the current requirement for leaseholders to pay their landlords cost of dealing with an enfranchisement claim should be eliminated or controlled.
- The law commission has also proposed a massive expansion to the commonhold system, which would give flat owners an option other than leasehold. It allows the residents of a building to own the freehold of their individual flat and to manage the shared areas through a company. The law commission further suggest to allow the leaseholders to unilaterally decide to convert to commonhold without the approval of any other parties.
It is thought these changes will make a real difference by giving leaseholders greater control over their homes, offering a cheaper and easier route out of leasehold properties.
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