The impact of the Leasehold and Freehold Bill on block management from 2024 onwards
Leaders Romans Group
One of the UK’s largest property services groups providing a comprehensive range of property related services.
Rob Poole , Director, Glide (part of LRG)
The Leasehold and Freehold Bill should be widely welcomed – specifically because of its intention is to reform rather than replace leasehold.
There has been a lot of noise around replacing leasehold with commonhold but this is unworkable on many levels. With commonhold for large blocks such as those that we manage, dispute resolution is so much more complicated because of the numbers involved, that many disputes may never be revolved. This would be compounded by the lack of a first tier tribunal.
The Government has already done a lot to make things fairer for leaseholders, such as changes to ground rents and the work with insurance commissions. This new Bill provides an opportunity to build on that.
It’s right that ground rents – basically a stealth income stream for freeholders – are capped. Similarly it’s right that estate charges are regulated? (preferably by the Leasehold Valuation Tribunal) because there are some shocking examples of home owners paying vastly inflated changes which, because they are not known and therefore not stress-tested as part of a mortgage application, can push people into poverty.
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The proposed lease extension is also welcome, because short leases delay sales, cause chains to break down and consequently contribute to the housing crisis.
While I welcome improvement, I’m conscious that change does not necessary constitute improvement – it is vital that the Government considers all potential changes very carefully and consults widely.
The Labour Party's pledge to abolish leasehold within it’s first 100 days of government is a bold move that seeks to dismantle a centuries-old tradition. The intention is to replace it with a more transparent and equitable alternative, potentially a commonhold system. This radical change could simplify property ownership, eliminate ground rents, and empower leaseholders, however, it poses significant challenges because dispute resolution is much more complicated as it requires all owners of the freehold to be consulted on decisions. With the lack of a first-tier tribunal in place, this could mean disputes are never resolved.
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Senior Developer | Founder | Building Safety Campaigner | Lib Dem Councillor Candidate (Promoted by Mark Pattenden on behalf of Steve Day, both at Liberal Democrats,?1 Vincent Square, SW1P 2PN)
7 个月The Earl of Lytton has tabled amendments to end service charge abuse, prevent insurance assignments and introduce the concept of a Building Trustee to ensure leasehold abuse ends and Commonhold thrives. The building trustee would be appointed for higher-risk buildings and large mixed-use developments. He or she would be an impartial figure whose role would be ensure that the interests, rights, responsibilities of the landlord (if any) and leaseholders are balanced and, more importantly that the building is properly maintained and the service charge provides value for money. In this way, the concerns raised in relation to leaseholder management of larger mixed use estates can be mitigated. In the event of insolvency of the landlord, the building trustee would step in to ensure the ongoing management of the building. Provision is made in the relevant amendment to prevent the termination of service contracts or insurance policies if a landlord becomes insolvent. More here: https://buildingsafetyscheme.org/trusthold-and-service-charge-amendments-tabled/