Leasehold Reform Update: The Latest News on the UK Government Consultation

Posted by Strettons on 8th February 2022 -

A year ago, the Government announced plans to shake up the Leasehold landscape, making it easier and cheaper to extend your lease or buy your freehold. The Leasehold Reform (Ground Rent) Bill aims to remove ground rents from new leases and is running through parliament, but that still leaves much of the current procedures in place. However, the Government have now announced a consultation on its proposals to reform the leasehold and commonhold systems.

The consultation invites homeowners and the real estate industry to share their views on the proposal's impact over the coming weeks, with responses requested by 22 February 2022 before final decisions are made.

 

The invitation seeks views on:

• The non-residential limit for collective enfranchisement;
• The non-residential limit for right to manage claims;
• A non-residential limit for individual freehold acquisitions;
• The introduction of mandatory leasebacks as part of collective freehold acquisitions;
• Commonhold voting rights in shared ownership properties; and
• The provision of information during the sale of a commonhold property.

What is interesting is what the Consultation paper does not seek advice on, particularly the removal of marriage value.

It is clear that despite all the Government's current problems, be it cladding issues or the coronavirus pandemic, they are still seriously thinking about Leasehold Reform.

Watch this space for more news later this year.