So what is the answer to the leasehold scandal? Is it commonhold? Or is it going to take a bit more for commonhold to take hold?
https://www.gov.uk/government/news/crackdown-on-unfair-leasehold-practices
The recent government consultation on 'tacking unfair practices and abuses in the leasehold system has just closed.
Apparently government has received over 6,500 responses and clearly reform in this area is an emotive issue.
Recently, I mentioned the topic of commonhold in passing – looking at some of the responses it is clear that this is something of an emotive topic!
I only said 'maybe' – but that seems to be the problem ! For half the audience commonhold is a dead duck – a large waste of space on the statute book and for the other half it represents a failed attempt to bring in something better.
Commonhold is not without its issues – there are a number of reasons that it has never taken off. The fact that it was never made compulsory is just one of them.
More significant issues revolve around 'service charges' and disputes. There is also the restriction on creating any kind of lease of a commonhold unit which will cause issues for some types of shared ownership structures.
It will be interesting to see how the consultation pans out. My personal bet is on there being some kind of restriction on rents for new build houses and/ or prohibition on creating these as leasehold save where absolutely necessary.
Here is a quick reminder of what the consultation is looking at:
We will have to wait for the answers which will no doubt be published later in the year. For the moment it is very much 'watch this space.'
Mark Chick
Mark Chick is a solicitor specialising in leasehold matters.
To to find out more visit www.bishopandsewell.co.uk or email leasehold@bishopandsewell.co.uk