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Leasehld reform: what happens next?

Written by: Maryanne Bowring 17/11/2020
  589       0
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What Are the Proposed Reforms?

In July 2020, the Law Commission published its recommendations for leasehold reform, aiming to change how flats are bought, owned, and managed. These reforms could have a significant impact on leaseholders, particularly those looking to extend leases, buy freeholds, or take control of management.

The Lack of Government Response

Since the release of the three Law Commission reports on leasehold enfranchisement, commonhold, and Right to Manage, the Government has yet to provide a response. While other pressing issues have taken priority, this delay has caused frustration among leaseholders and industry professionals.

Industry Reactions and Concerns

The Association of Leasehold Enfranchisement Practitioners (ALEP) has urged Housing Minister Christopher Pincher MP to provide an update. A recent survey of ALEP members—lawyers and valuers specializing in leasehold—showed that:

  • Only 12% expect reforms within three years.
  • 56% believe reforms will take three to five years.
  • Over 25% think changes could be five to ten years away.
    For many leaseholders, this uncertain timeline is frustrating and makes planning difficult.

Challenges with the Current System

The existing leasehold system has complex legal pitfalls that can make processes like lease extensions or buying the freehold complicated. These issues are precisely what the proposed reforms aim to resolve.

What Leaseholders Can Do Now

Despite the slow pace of reform, leaseholders can still:

  • Extend their lease
  • Purchase their freehold
  • Use their Right to Manage (RTM) to take control of their building’s management
    By working with a specialist property professional, leaseholders can navigate the current system effectively.

Need Help? Get Expert Advice

If you and your fellow leaseholders want to explore these options, Ringley has years of experience in guiding flat owners through leasehold processes. Our services are easily accessible, even during lockdown, and we offer helpful e-Books on our website to assist you further. Get in touch today for expert guidance.



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