So finally the Law Commission report on leasehold has been published.
In the main it is very encouraging for leaseholders.
If enacted Right to Manage actions will be much easier and far cheaper.
Managing agents will no longer be able to game the system by adding costs, challenging RTM's due to a comma being in the wrong place and using delaying tactics to thwart a Right to Manage.
No longer will freeholder legal costs be added.
Right to Manage will be extended for those who live on mixed developments
Whereas if 25% of the development was commercial that could stop a Right to Manage that will be increased to 50%.
The time frame for Right to Manage will be shortened, so the managing agent would only have two months to respond to a Right to Manage action.
Lesasehold extensions/enfranchisement is also going to be made much easier and cheaper.
The informal route of extension that has trapped so many, apears to be on the way out.
This will be replaced by a statutory lease extension not of 90 years but any extension will bring the lease up to 990 years.
This not only wipes out the ground rent but also means only one lease extension need ever be carried out in the future.
For those suffering from onerous ground rent terms, it will be possible to buy out the ground rent element without extending the lease.
Nothing about leasehod is going to be fixed tomorrow?
Leaseholders should expect a delay of three-five years before any legislation is enacted.
But the Law Commission report is an important signpost for the road ahead.
If it is the case then the offshore money men may get a little nervous about future investments in the property market?
And that can only be good for leaseholders who have been so exploited by them.
