Leasehold reform offers fairer deal for owners of houses and flats

The leasehold property system in England and Wales is set for its biggest-ever shake-up if radical proposals for reform by the Law Commission are passed.

The commission says the current system is too complex, slow and expensive, and it wants the public to participation in its consultation by November 18 to ensure its proposals to the Ministry of Housing and the Welsh Government have been seen by the widest possible audience.

The MoH and the Welsh Government had asked the commission earlier this year to examine the current system for leasehold in England and Wales, looking at ways to make the process of extending a lease or buying a property’s freehold – known as enfranchisement – quicker, simpler and cheaper for leaseholders.

The commission was also asked to look at ways of making the system fairer for the freeholders who will be affected by any changes to the law.

Current system failing homeowners

Law Commissioner Professor Nick Hopkins said: “The current system is complex, slow and expensive, and it’s failing homeowners. Many feel they are having to pay twice to own their home.

“Our proposals would make it easier and cheaper to buy the freehold or extend the lease of their home, ensuring the system works for ordinary homeowners across the country.

“We want to hear views from across the spectrum on how this complicated area of law can be improved.”

In its consultation paper, entitled Leasehold home ownership: buying your freehold or extending your lease, the Law Commission proposes:

• Making the enfranchisement process easier, cheaper and quicker;
• Improving and enhancing the rights of leaseholders to buy the freehold or extend a lease;
• Introduce a simpler unified procedure for houses and flats;
• Remove any limitations on the right to enfranchise – at the moment, leaseholders must have owned their property for two years before making a claim.

Complicated legal system

More than 50 different Acts of Parliament currently govern leasehold in England and Wales, making this a legal minefield for both freeholders and leaseholders.

A freeholder owns the land on which a property stands, the leaseholder owns only the property itself. The land is leased to the property owner for a specific period of time, usually decades.

Issues arise when the lease is close to expiry, in many cases making the property unmortgageable or unsellable because when the lease expires, ownership of the property reverts to the freeholder.

There are an estimated 4.2 million leasehold properties, mainly flats, in England alone.

Look to Best Value Conveyancing for leasehold conveyancing

When you intend to buy or sell a leasehold property, you need an expert conveyancing solicitor on your side. Best Value Conveyancing works with experienced property lawyers across England and Wales who have a wide knowledge of leasehold conveyancing and can also act for you if you want to extend a lease or buy out a property’s freehold.

Call our team now on 0800 387 007 to talk through what you require from leasehold conveyancing. We’re here seven days. You can also get an instant, no-obligation quote for leasehold conveyancing online.