The publication of the three long-awaited reports by the Law Commission, set out aims to transform the leasehold system, in the areas of leasehold enfranchisement, the right to manage and commonhold.
The Law Commission has said that the proposed changes will “transform the future of homeownership.”
Looking at some of the proposals in relation to leasehold enfranchisement, which gives people who own property on a long lease the right to buy the freehold or extend their lease, they are intended to simplify the current procedures and give leaseholders greater control over their homes. The recommendations apply to both houses and flats.
The Commission recommends that leaseholders of houses and flats should have the right to a lease extension of 990 years, replacing the shorter extensions of 50 or 90 years under current law.
The Commission also reiterated calls for leaseholders to be able to extend their lease or buy their freehold immediately after buying their home, rather than having to wait two years as they do now.
The Commission recognises that the proposals would alter the law in favour of leaseholders and it will be interesting to review the Government response and see if it mentions any plans to protect the interests of landlords. We will be watching developments closely and in the meantime if there is anything we can assist you with, please contact us.
