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The Times: Ministers plan an end to feudal leasehold property laws

https://www.thetimes.co.uk/edition/news/ministers-plan-an-end-to-feudal-leasehold-property-laws-xvclddqcd

 

The Telegraph: Homeowners to be freed from toxic leasehold contracts in huge property law upheaval

https://www.telegraph.co.uk/property/uk/homeowners-freed-toxic-leasehold-contracts-huge-property-law/

 

Summary: right to extend lease to 990 years with no ground rent payable. Commonhold to be introduced for blocks of flats.

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The potential unkown consequences of this could be staggering.

 

Leasholders want compensation for previous years.

Freeholders want compensation for loss of income.

Leasehold house prices will go up.  

No more cheap(er) houses with short leases.

If you just sold a house with a short lease for a knockdown price - tough 

  

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Is the 990 year leasehold on houses to force the sale of the freehold? Are there any circumstances in which you would want a 990 year leasehold but not the freehold of a house. You already have the right to buy the freehold through enfranchisement  so presumably a 990 leasehold will in practice be the purchase of the freehold.

14 minutes ago, wighty said:

Leasholders want compensation for previous years.

Freeholders want compensation for loss of income.

I agree that freeholders will want compensation for loss of income, but why should the leaseholders be eligible for compensation in previous years?

The significance of this proposed legislation is not to be underestimated.

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1 minute ago, Notting Hell said:

Is the 990 year leasehold on houses to force the sale of the freehold? Are there any circumstances in which you would want a 990 year leasehold but not the freehold of a house. You already have the right to buy the freehold through enfranchisement  so presumably a 990 leasehold will in practice be the purchase of the freehold.

I agree that freeholders will want compensation for loss of income, but why should the leaseholders be eligible for compensation in previous years?

The significance of this proposed legislation is not to be underestimated.

Cant tell you,  but they will and loads of no win- no fee compensation scammers will peddle schemes.

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This seems like exactly the kind of bold ministerial push that will get bogged down by lobbying and vested interest MPs in the ruling party, drop down the government's list of priorities and then quietly die a death after a Cabinet reshuffle/new PM/general election. See Theresa May's premiership or every episode of Yes, Minister for more details.

Edited by Dorkins
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Will this apply to blocks of flats with potential fire safety issues where it maybe 3-4 years before an EWS1 from is done and they find issues many are praying that the fire safety bill amendment is passed so freeholders on the hook for costs and not leaseholders.

Don't think freeholders who are investment companies based offshore in many cases will allow this to happen and Tory government can not afford to lose contributions from the housing and fiancial services companies who own these freeehold so will be surprised if this goes ahead especially with Boris Johnson's large majority and benches stiffed with Tory grandees and others with vested interests.   

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