Jan
12

Response to government leasehold reform announcement

Further to the government’s recent announcement on leasehold reform, an article from Leasehold Solutions reports the ability to extend a lease to 990 years is just "window dressing" and falls short of what is needed. Anna Bailey, Founder and CEO of the Leasehold Group, believes the extension is likely to further confuse the market, saying: “Giving leaseholders the opportunity to extend their lease by 990 years is actually a moot point; a leaseholder already has the right to extend their lease by 90 years and reduce their ground rent to a “peppercorn” (i.e. zero) under existing legislation, and, arguably, there is virtually no difference in the value of a leasehold property with a 990-year lease compared to a 160-year lease.” Welcoming the announcement that a Commonhold Council will be formed Anna said: “The composition of the Council also needs to be representative and must include a wide range of experienced, expert voices, including those leaseholders and managing agents with first-hand experience of running blocks of flats, to ensure that any proposals are realistic and workable.” 

Find the full article here.