Christopher Grady, Partner and residential development specialist at Weightmans LLP said:
“The Law Commission has offered clarity and the prospect of concrete regulation to an area of the residential property market that currently lacks oversight. If enacted, its proposals would improve the current enfranchisement system, making the process of purchasing a freehold, or obtaining an extended lease much clearer and more affordable for consumers.”
“The commission has recommended a number of ways this could be done in practice, but whatever option the government chooses, the need for customers to undergo a potentially lengthy, costly tribunal, or negotiation process, should be removed – a development that should be welcomed.”
“In my experience volume housebuilders have been prioritising freehold sales and moving away from the leasehold model for some time now, in response to consumer concerns. My clients have been working hard to make leasehold terms more customer centric for sales still in the pipeline, such as extending the length of leasehold agreements, ensuring ground rent reviews are index-linked, or not charging any ground rent at all.”