The Conveyancing Association (CA) has issued a response to the Law Commission's leasehold reform consultation.
The CA is the leading body for the conveyancing industry and argues that once the premium costs of a lease extension are reduced, more leaseholders will be able to benefit and free themselves from leases with terms that are not acceptable to major lenders.
To name a few, the CA are calling for the introduction of a fast-track dispute resolution service which has jurisdiction over all lease terms, rather than just some. Furthermore, the CA suggests that the premium calculations for lease extensions and enfranchisement are overly complex and currently favour a landlord.
If you would like to read the full Law Commission consultation document, it can be viewed at: https://www.lawcom.gov.uk/project/leasehold-enfranchisement/
If you are either a landlord or tenant and are facing lease extensions, or maybe tenants wish to purchase the freehold (collective enfranchisement), or even considering taking over management of the Property (Right to Manage), Dutton Gregory can assist with all such matters, so call us to discuss your situation and what route is best for you.
The consultation paper, entitled, ‘Leasehold home ownership: buying your freehold or extending your lease’, was published in September last year and the deadline for responses recently passed on the 7th January 2019. In its response to the questions outlined in the consultation, the CA argues that any reforms should be relevant across England &Wales including: The entitlement of leaseholders of both flats and houses to a lease extension of 999 years as often as they wish and on payment of a premium. The fact leaseholders should have a right to a lease extension at a nominal ground rent, plus they should have the choice to extend the lease without changing the ground rent but at a reduced premium and on the flip side should have the choice to extinguish the ground rent (without extending the lease) at a reduced premium.