The Law Commission announced today that it intends to publish a consultation paper on enfranchisement in September 2018, following which there will be a public consultation; they also intend to publish consultation papers on commonhold and Right to Manage by the end of the year. A real shake up appears to be on its way.
Particularly looking forward to the consultations to come; so far ,lenders have been reluctant to accept commonhold structures and the absence of such properties in the market is likely to deter more lender participation until such time as the structure is more widely accepted – very chicken and egg. Lenders are also going to be concerned about what happens to their existing security if commonhold , as an identifiable interest, is removed. All these changes will need to ensure lenders security is protected if lender support is to be forthcoming.Watch this space closely.
Radical new proposals to provide a fairer deal for leasehold homeowners have been announced by the Law Commission. Following hot on the heels of plans by the Government to ban the sale of houses on a leasehold basis, the independent legal body is outlining a range of measures to help existing leasehold homeowners buy the freehold of their houses. These include: options for changing the valuation formula, having been asked by Government to examine how to reduce the price while providing sufficient compensation to landlords making it easier for homeowners to buy the freehold removing the requirement that leaseholders must have owned their house for two years before making a claim The proposals will give leaseholders security and control over their homes.