Today we have received the Law Commission’s long-awaited report on the options to government for reducing the price payable on enfranchisement.
This follows on from the Law Commission’s report on reforming the law in relation to enfranchisement more generally. Their full report on this is expected later on in the spring.
However, today’s report sets an important tone as it sets out the available options to government if it wants to reduce the premium that leaseholders will pay when they buy their freehold or extend their lease.
Because the nature of the proposed reforms are inherently political, as they involve an adjustment of property rights and property values, the Law Commission has not favoured one particular view but set out three main options for reform further details which appear below.
A link to the full content of the report can be found on the Law commission’s own website see: https://www.lawcom.gov.uk/project/leasehold-enfranchisement/
Mark Chick commented as follows:
“This report does not contain too many surprises, but does set out three bold options reforming the law in this area. The first is likely to be too radical to be adopted but the second and third have potential viability.
No doubt many commentators will say that the proposals do not go far enough, but the report is at pains to point out that any reforms would have to pass the appropriate tests of proportionality under the Human Rights legislation.
There are a number of good ideas, including the introduction of a calculator with prescribed rates for lower value or simple claims and it will be for Parliament to debate and consider which of these options (if any) it wants to adopt when enacting legislation. Any actual change in the law is likely to be some way off (at least 3-5 years away) and so, if lease length is an issue for you, you should not delay in taking action.”
Further and more detailed comment appears at: http://www.leaseholdreformnews.com/
For more information, please contact our expert Landlord & Tenant team on leasehold@bishopandsewell.co.uk or call 020 7631 4141.
