Leasehold Reform

Contents

Summary

Introduction

1 Future of leasehold tenure

The leasehold model

Role of freeholders

Dissatisfaction with the leasehold tenure

A transition to commonhold

Concerns with the legislation

Wider reasons for the lack of commonhold developments

2 Accusations of mis-selling

Lack of clarity in the sales process

Promises to purchase the freehold

Comparison with PPI mis-selling

Conveyancing solicitors

Relationship between developers and solicitors

Failure to highlight onerous terms

3 Onerous lease terms

Ground rents

Onerous ground rents

Ground rents in existing leases

Ground rents in future leases

Permission fees

Onerous terms: are they ‘unfair’?

4 Service charges, one-off bills and dispute mechanisms

Service charges

Transparency and overcharging

Regulation of sinking funds

Estate management fees and the non-adoption of communal areas

One-off bills for major works

Dispute resolution

Imbalance of power

Legal costs

New routes to redress and control for leaseholders

Freeholders’ Code of Conduct

Leasehold Advisory Service (LEASE)

5 Enfranchisement

Cost of enfranchisement

Law Commission consultation

Support for low-income leaseholders

National Trust leaseholders

Wider review of legislation

Conclusions and recommendations

Annex: Summary of discussions at an informal roundtable event with leaseholders

Formal Minutes

Witnesses

Published written evidence

Published correspondence

List of Reports from the Committee during the current Parliament




Published: 19 March 2019