So, what changes can we expect?
The consultation makes provisional proposals for reform that are designed to simplify and reduce the costs of acquiring a freehold or extended lease, provide a better deal for leaseholders by making enfranchisement easier, quicker and more cost effective, as well as reforming the existing rights of leaseholders. Here’s a summary of some of the key proposals and what they could mean for you:
Leaseholders of flats
- One regime for both houses and flats, reducing complexity and costs.
- Prescribed forms for making and responding to any enfranchisement claim, making mistakes less likely to occur, preventing unnecessary costs and landlords taking advantage of leaseholders’ mistakes.
- The use of Tribunal to settle disputes and process claims in the case of missing landlords.
- Leaseholders no longer required to pay their landlord’s non-litigation costs or the introduction of controlled costs.
- No minimum period of lease ownership before the leaseholder of a flat can bring a claim, reducing delay and costs for leaseholders.
- A new right to participate in an earlier collective freehold acquisition, stopping leaseholders from being locked out of ownership.
Leaseholders of houses
- One regime for both houses and flats, reducing complexity and costs.
- No minimum period of lease ownership before a leaseholder of a house can bring a claim, reducing delay and costs for leaseholders.
- Leaseholders of houses able to extend their lease for a longer period, at a nominal rent and no limit on the number of extensions.
- A right for all leaseholders on an estate (whether they own a flat or house) to join together to acquire the freehold to the whole estate.
- Common procedure for dealing with missing landlords, ensuring leaseholders can exercise rights and save costs.
- The use of Tribunal to settle disputes.
- Leaseholders no longer required to pay their landlord’s non-litigation costs or the introduction of controlled costs.
Landlords
- One regime for both houses and flats, reducing complexity and costs.
- A 25% limit to apply to all freehold acquisition claims, allowing landlords to retain buildings with substantial commercial use.
- A power to require contributions to be made after the freehold is acquired, allowing estates to continue to be maintained.
- A single procedure to apply to any enfranchisement claim, reducing complexity, confusion and costs for all parties.
- Prescribed forms for making and responding to any enfranchisement claim, making mistakes less likely to occur.
- It is anticipated that many of these proposals will be implemented so if you are thinking about extending the lease on your property, or you are a landlord who would like more information about the upcoming reforms, visit the following pages.
Lease Extensions
Freehold Enfranchisement
