At some point in the future the laws on leasehold are going to change.
The possibilty of forthcoming change is reflected in the recently published accounts of the Tchenguiz Family Trust group company, Proxima GR Properties.
The Tchenguiz freeholds are financed by a loan of £724m due for repayment in 2080.
A statement in their accounts refers to the Law Commission report on leasehold.
The Law Commission to advise on potential changes to the existing law with the purpose of making enfranchisement and lease extensions easier and cheaper for leaseholders.
The implementation of any such changes could also materially reduce the level of income of the portfolio.
Such changes if implemented,would be a significant threat to the company.
So there you have it?
The Proxima business model is dependant on making enfranchisement and lease extensions as difficult and as expensive as possible?
