Government warned not to repeat mistakes on leasehold reform
ALEP's Mark Chick says ministers must be transparent about their plans, and ensure changes to leasehold and commonhold law will work.
The Government is being warned the ‘devil is in the detail’ as it attempts to overhaul leasehold and commonhold law.
Leasehold experts say recent legislation contains “flaws”, and there is a danger that a new law will fall into the same trap.
The Draft Commonhold and Leasehold Reform Bill was published in January, setting out proposed changes for residential tenure in England and Wales.
It follows the Leasehold & Freehold Reform Act 2024 (LAFRA), which became law just as the last Government left office.
Unresolved flaws
Now, ALEP (the Association of Leasehold Enfranchisement Practitioners) is warning that transparency about ground rents, valuation reform and unresolved technical flaws affecting implementation of LAFRA remain priorities.
ALEP has written to the Housing, Communities and Local Government Select Committee setting out a series of further technical concerns that it says should be addressed.
In particular, it is seeking publication of proposed amendments to LAFRA, and clarification of the precise areas within the Act that ministers believe require revision.
When it comes to the law relating to enfranchisement, the key is very much in the detail.”
Mark Chick, Director at ALEP and Senior Partner at Bishop & Sewell (pictured), says: “Reform in this area is both necessary and welcome, but it needs to be operable.
“The legal and valuation framework must be clear enough for leaseholders, freeholders and professional advisers to understand how the system will work in reality.”
Open to scrutiny
He added: “Where Government has identified flaws or intends to rely on further regulations, those points should be visible and open to scrutiny now rather than after the event.
“As we have seen with LAFRA, when it comes to the law relating to enfranchisement, the key is very much in the detail.”
The draft bill proposed banning the use of leaseholds for most new flats, making it easier for existing leaseholders to convert to commonhold, capping ground rents on existing leases and abolishing forfeiture for long residential leases.
