The governent has just published its Housing white paper.
There current press and parliamentary interest in leasehold has brought leasehold issues into the spotlight and the recent stories about escalating ground rents and also leasehold houses in particular are an area where government is going to look to intervene
In particular see the paragraphs below:
Leaseholders
4.36 The Government will act to promote fairness and transparency for the growing number of leaseholders. Leasehold has been a traditional part of the housing market in this country but there are areas where urgent reform may be needed, particularly when buying a house on a leasehold basis. New leasehold houses can be marketed at a reduced price compared to freehold. But some purchasers are not aware at the point of sale that the associated costs of buying a new leasehold house can make it more expensive in the long run. Some freeholds and ground rents of leasehold houses are sold on and traded, with leaseholders left in the dark, and facing increasing and onerous payments. This is not in consumers’ best interests.
4.37 In particular, ground rents with short review periods and the potential to increase significantly throughout the lease period may not be offering a fair deal. We are absolutely determined to address this. We will therefore consult on a range of measures to tackle all unfair and unreasonable abuses of leasehold.
4.38 We will consider further reforms through the consultation to improve consumer choice and fairness in leasehold, and whether and how to reinvigorate Commonhold. We will also work with the Law Commission to identify opportunities to incorporate additional leasehold reforms as part of their 13th Programme of Law Reform, and will take account of the work of the All-Party Parliamentary Group on Leasehold and Commonhold.
There is quite a lot of food for thought here and is good to see that government are prepared to intevene to stamp out abuses.
In addition to regulation and legislation as I and several of my ALEP colleagues have been saying for a number of years, part of the solution is also better education for professionals and leaseholders so that consumers are better informed.
It will be interesting to see how the debate develops and how much parliamentary time will be available to devote to these issues given other pressures such as the Brexit negotiations.
Mark Chick
Mark Chick is a solicitor dealing with leasehold issues. This note (being very general in its nature) is not a complete statement of the law in this area. It is therefore not a substitute for legal advice from a suitably qualified professional and should not be relied upon as such. No liability can therefore be accepted for any actions based on reliance upon it.
If you require legal advice please visit www.bishopandsewell.co.uk