The Law Commission's proposed reforms could save leaseholders money and help keep them out of the FTT
Last Thursday the Law Commission published its report into leasehold reforms. The Commission puts forward three schemes for determining the premium to be paid by flat owners wanting to extend their lease. Each of them will make enfranchisement cheaper, saving leaseholders money. Each scheme uses a different method to determine the price of enfranchisement and allow further reforms to make the process simpler and to reduce uncertainty.
The report also examines the way in which the value of the landlord?s interest is calculated, to identify reforms that could lower premiums without breaching the UK?s human rights legislation that protects landlords' property interests.
Alongside the three schemes, the Law Commission has put forward a range of other options for reform. These include:
Author : Mary-Anne Bowring
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