An Update for Leasehold Reform?
Michael Gove has said in an interview with the Times that he plans to scrap the leasehold system by the end of this parliament.
Leasehold reform has been mooted for some time now. Following the Law Commission’s reports published in 2020, many practitioners have been waiting to see if and when the proposed reforms will come in. Gove’s recent announcement suggests this is back on the agenda but we still have very little information as to what is planned and when it will happen.
It appears that the Government may believe that Commonhold is the answer to all the issues with leasehold ownership; read my update on the proposals in relation to Commonhold here: https://www.forsters.co.uk/news/blog/commonhold-law-commissions-final-report. I am not convinced that this is the answer to all of the questions currently being asked. Gove appears to be particularly concerned about management and service charges levied in leasehold blocks but buildings will still need to be managed if owned under Commonhold and charges will still need to be levied for such management.
We will be waiting to see if any further formal announcements are made in relation to the proposed reforms so watch this space!
Subcribe to news and views"I don't believe leasehold is fair in any way. It is an outdated feudal system that needs to go" Michael Gove
https://www.thetimes.co.uk/article/michael-gove-vows-to-scrap-feudal-leasehold-system-this-year-920srddc6