This page contains a Flash digital edition of a book.
In Focus Commercial Credit


be drawn from a prescribed list, arguing that such standard wording can then be written in plain English and be more widely understood by the public with the provision of basic advice. We argue this would reduce costs, create


a better-educated consumer and lead to a higher proportion of leaseholders seeking extensions as they would not be put off by the perceived complexity of the process and terms used.


Over time We would also suggest that we are not alone in thinking that the premium calculations for lease extensions and enfranchisement are overly complex and have developed over time to be weighted heavily in favour of the landlord. What might have been appropriate in a


time where leasehold property commanded lower prices per square foot than freehold, is simply not valid where full market value has been paid for a property along with a large amount of rent. In our response, we set out the inequity


of a leaseholder having to pay time and again for the privilege of being able to live, sell or remortgage their own property and supports the Law Commission’s proposals for simplifying the premium calculation. Our response to the Law Commission


consultation follows a response we made to last year’s Ministry for Housing, Communities & Local Government (MHCLG) consultation on Implementing Reforms to the Leasehold System.


Fit for purpose We see this response as being the natural culmination of the vast amount of work that has been carried out in the leasehold arena and, following this consultation, we are extremely hopeful that we can have a system that is fit for purpose and does not work against both existing or new leaseholders in the future. Developing a system which allows


leaseholders to extend their lease in a unified and stable way, without the vast amount of cost this currently requires, will open up this whole market, delivering far


February 2019 www.CCRMagazine.com


greater confidence to existing leaseholders and ensuring they are not exploited by freeholders or feel prisoners in their homes due to being unable to remortgage or sell their property.


We see this response as being the natural culmination of the vast amount of work that has been carried out in the leasehold arena and, following this consultation, we are extremely hopeful that we can have a system that is fit for purpose and does not work against both existing or new leaseholders in the future


Scandal The leasehold scandal that has emerged over the past few years has shown that we need far greater clarity and transparency in this part of the housing market, and we are still utterly convinced that a greater take-up of commonhold arrangements, as opposed to leasehold, would be a far better option for many consumers. That said, with the measures we outline


in our response, and the work of all stakeholders, we should be able to move to a much fairer leasehold arrangement and start to provide far greater confidence for those who have, up until now, been placed in a very unsatisfactory position. CCR


The full Law Commission consultation document can be viewed at the following link: https://www.lawcom.gov.uk/project/leasehold- enfranchisement/


19


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52