Justin Madders MP will table a private members bill today aimed at reforming leasehold and the approach to valuation.
The bill is not likely to make it into the statute books but will serve to stimulate discussion in this area. Mr Madders is the MP for Ellesmere Port and had constituents who have been affected by the issue of leasehold houses.
7th November 2017
Hello Mr. Madders. Congratulations on taking up the matter of Leaseholder interest, long overdue. There are too many ways a freeholder can abuse his position and here is one of the most extreme. Property developer freeholder persuades 1 other leaseholder (who has a long lease) to co sign co and appoint him nominee purchaser. They now represent 50% qualified to enfranchise on a building of 4 units. This is done in the full knowledge that the other two leaseholders have very, very short leases: then a year later, buy out the co signatory. Freeholder then offers to buy out said two short leases, which by now are worth 50% of open market value with a long lease. Nice way to profit from the current system.