Leasehold home ownership buying your freehold or extending

Leasehold home ownership: buying your freehold or extending your lease Law Commission Consultation Paper @Law_Commission www. lawcom. gov. uk

Our role Fair Costeffective Keep the law of England Wales under review and to recommend reform where it is needed Simple 2 Modern

Background to our project Concerns about leasehold 3

Residential leasehold and commonhold: Terms of Reference Freeholders Leaseholders 4

Enfranchisement: Terms of Reference Improve access Simplify Options to reduce premiums 5

Scope of our work How? Who? How much? What? 6

Limits of our work Enfranchisement does not address all concerns with leasehold: • Existing lease terms • Mis-selling Further Law Commission work: • Commonhold • RTM • Unfair terms on assignment Further MHCLG work 7

Our consultation Consultation paper and summary of the consultation paper www. lawcom. gov. uk/project/leasehold-enfranchisement Online response form www. consult. justice. gov. uk/law-commission/leaseholdhomeownership Leaseholder survey www. consult. justice. gov. uk/law-commissionleaseholder-survey Our consultation closes on 7 January 2019 8

Aims for today • We want to hear your views on our provisional proposals for reform • We will also try to answer as many of your questions as we can – but we cannot give legal advice • We hope our presentation will help inform the debate about our proposals and encourage you to send us written responses 9

How would our proposals affect leaseholders? Four areas: • What are the enfranchisement rights? • Who can enfranchise? • How do you enfranchise? • How much will it cost? 10

What are the enfranchisement rights? Lease extensions Individual freehold acquisitions Collective freehold acquisitions (plus estate enfranchisement) Right to participate 11

Who can enfranchise? One scheme for houses and flats 12

How do you enfranchise? Single, simplified procedure 13

Options for reducing the cost • We are not making proposals for reducing the cost – we are setting out options 14

Options: simple formulae Two options Option 1 A: ground rent multiplier Option 1 B: percentage of value 15

Other options Option 2 A: no Option 2 B: marriage value Option 2 C: current methodology + reforms 16

Further information Project webpage for residential leasehold and commonhold reform: https: //www. lawcom. gov. uk/project/residentialleasehold-and-commonhold/ or www. lawcom. gov. uk à“Find a project” àSearch “residential leasehold” 17