April 2018

Before the Law Commission begins a law reform project, it agrees terms of reference with the relevant government department. On the 18 April 2018, the Law Commission (the Commission) published its terms of reference (TOR) for its residential leasehold and commonhold project.

This is the outcome of over 6,000 submissions to the government’s ‘Tackling unfair practices in the leasehold market’ consultation (LEASE response here); and the Law Commission’s own consultation on its 13th Programme of Law Reform. The latter also received substantial numbers of responses calling for leasehold reform.

The Law Commission has now been tasked by government to improve “consumer choice, and with providing greater fairness and transparency for leaseholders”. The Commission’s review will “complement Government’s own work to remove incentives to use leasehold, and Government’s work to address non-legal issues to re-invigorate commonhold such as education, publicity and supporting developers, lenders and conveyancers.”

The government aims to:

In summary, the TOR covers:

Leasehold

Commonhold

LEASE is governed by a board, appointed as individuals by the Secretary of State for the Ministry of Housing, Communities & Local Government.