As covered in our article at the start of 2021, the Government is taking forward a comprehensive programme of Leasehold reform.
To facilitate this, they have launched a consultation on the Law Commission proposals. Specifically, the proposals that would allow more residential Leaseholders to buy the Freehold of their property (through Enfranchisement) or take over the management of their building (through the Right to Manage).
Currently, Leaseholders living in mixed use buildings cannot enfranchise or claim a right to manage if 25% or more of their building’s floorspace is utilised for non-residential units. Increasing this limit to 50% would allow more Leaseholders to buy their Freehold or take over management of their building.
Leaseholders would also be able to reduce the price paid for a Freehold by requiring Landlords to retain an interest in any units not participating in the Enfranchisement claim.
These proposals would broaden access to Enfranchisement and the Right to Manage, giving Leasehold homeowners choice over what type of ownership and management responsibility they want to have for their property.
The consultation also covers how Shared Ownership Leases could work in commonhold settings; and the provision of information for buying and selling a commonhold property.
The consultation will close on 22 February 2022 and is open to all members of the public. We strongly recommend that as many people as possible take part in the consultation to ensure that the findings are as inclusive as possible. Click here to complete the consultation.
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