The Law Commission publishes proposals for the reform of leasehold enfranchisement

September 2018

The Law Commission has published its proposals for the reform of leasehold enfranchisement in “Leasehold home ownership: buying your freehold or extending your lease” and it invites views on the proposals. It aims to publish its final report, and assist with the implementation of its recommendations, in 2019.

The paper is over 500 pages long, and helpful summaries have been provided:

• A short summary of what the proposals mean for leaseholders of houses is here.
• A short summary of what the proposals mean for leaseholders of flats is here.
• A short summary of what the proposals mean for landlords is here.
• A short explanation of why the Law Commission is discussing landlords’ human rights is here.

Briefly, the consultation makes provisional proposals for reform designed to:

1. Provide a better deal for leaseholders by making enfranchisement easier, quicker and more cost effective;
2. Reform the existing rights of leaseholders, including removing the separate rules for houses and for flats; and
3. Simplify, and reduce the legal and other costs of, the procedure for acquiring a freehold or an extended lease.

Options for reducing the price payable by leaseholders to exercise those rights, whilst ensuring sufficient compensation for landlords to reflect their legitimate property interests are also set out.

The proposals follow the publication, in July 2018, of the Commission’s summary of proposed solutions for leaseholders of houses .

The consultation closes on 7 January 2019.

Comments may be sent using the online form. Where possible, it would be helpful to the Law Commission if this form was used. It has also created a short survey, which asks leaseholders (and former leaseholders) for information about their leases, and about their experiences of the current enfranchisement process. The survey is available here.

Alternatively, comments may be sent:

By email to propertyandtrust@lawcommission.gov.uk.

By post to Leasehold Enfranchisement Team, Law Commission, 1st Floor, Tower, 52 Queen’s Anne Gate, London, SW1H 9AG.

(If you send your comments by post, it would be helpful if, whenever possible, you could also send them electronically.)