Residential leasehold is one of the projects in the Law Commission’s 13th programme of law reform. It has now published its summary paper on proposed solutions for leasehold houses. A full consultation paper covering leasehold flats and houses will be published in Autumn 2018.

The proposed solutions include:

  • options for reducing the price that leaseholders pay to the landlord such as by changing the formula used to calculate the cost, following the Government’s request to set out ways that the price could be reduced
  • improving the right for leaseholders of houses to buy the freehold from their landlord
  • introducing an alternative right to purchase unlimited longer lease extensions without a ground rent – of (say) 125 or 250 years
  • making the enfranchisement procedure simpler to understand, to minimise disputes and prevent leaseholders falling into legal traps
  • removing the requirement that leaseholders must have owned the lease of their house for two years before making a claim
  • potentially scrapping whether leaseholders should contribute to their landlord’s legal costs, and if not, capping the contribution at a fixed maximum amount.