10 September, 2018
As part the Law Commission’s plans to reform residential leasehold law it is considering ways to simply the enfranchisement procedure and, as part of its considerations, the sale of houses on a leasehold basis has come under particular scrutiny.
Key issues it has identified is the criticism that the sale of houses on a leasehold basis occurs because developers wish to extract an additional profit from homeowners by retaining the freehold and extracting a “ground rent”.
In recognition of this and in advance of its proposals for a new enfranchisement regime (due to be published in September 2018) the Law Commission has published a report summarising its proposed solutions for leaseholders of houses specifically.
A link to the full report can be found here
These are the main proposals put forward:
We are monitoring developments as they occur.