Suchergebnisse

There are over four million leasehold properties within England and Wales according to the Government. This represents a sizeable number of voters. First a little bit of background.In December 2017 Sajid Javid, as Secretary of State, commissioned the Law Commission to find ways to make it 'easier, faster and cheaper' for leaseholders to extend their lease and buy the freehold (the Labour Government under Tony Blair tried to do this in 1997). The King's Speech on 7th November unveiled the Government's proposal.A number of the proposals are pragmatic. The introduction of 990 year leases with a ground rent of a peppercorn is a sensible way forward, as is allowing purchasers to immediately pursue a lease extension/enfranchisement rather than wait the current two years of being registered at the Land Registry. It is also pragmatic to allow the 25% commercial element to be increased to 50% for collective enfranchisement. However, there is a fly in the ointment. This 'fly' is the Government needs an easy win ahead of a General Election and by threatening to fix the rates in calculating the premium to extend the lease and abolishing marriage value to make it cheaper for leaseholders there will be a costly and lengthy legal challenge. Freeholders have already stated they will mount a fierce legal challenge if marriage value is abolished and they are not paid 'fair' value representing current market evidence. The Law Commission was so worried about this they took leading counsel's opinion on this matter, who warned there was a high risk of freeholders being successful, which would cost taxpayers tens of billions of pounds. The reality is the introduction of new 990 year lease means marriage value (only payable under 80 years) and ground rent will naturally fall away. Consequently, the Government pursuing this policy seems reckless in the extreme, especially when taxpayers might have to pick up the bill.Is there a workable solution?Our team of academics offered the Government a real time working calculator, which uses market evidence and is updated daily and it keeps marriage value (much reduced due to proper peer reviewed research) and can reduce the amount payable by up to 62%. Millions of leaseholders need reform and Government needs a success and taxpayers should not be made to pick up the bill to the tune of tens of billions of pounds when there is a workable solution. All political parties are in favour of reform, but it must be done fairly and without cost to taxpayers.