The Law Commission has come up with a series of radical reforms for the leasehold sector.

The Government said last December it will ban the sale of new-build houses as leaseholds.

At the same time, it asked the Law Commission to propose solutions to issues facing existing owners of leasehold houses.

The Law Commission has now returned with initial proposals which will be included in a wider consultation covering both houses and flats in September.

Among the options the Law Commission now proposes is the suggestion that leaseholders will no longer have to own their property for two years before they can make a claim.

It also says the current system for extending a lease is “inherently unfair” to leaseholders and the valuation model – a complex combination of the time left on the lease, the current and future property values, the potential ground rent losses – is too complicated.

The Law Commission said the statutory enfranchisement process was “the product of over 50 Acts of Parliament, totalling over 450 pages, with numerous anomalies and unintended consequences”.

Instead, the Law Commission has proposed two options.

The first uses a simple formula to set the premium such as 10% of the property value or ten times ground rent.

Another proposed option is using the “market value” taken in the current system, but removing the “marriage value” – which is a figure calculated by taking the property price and adding any future losses in ground rent incurred by extending the lease.

The Law Commission said it would also invite views on whether leaseholders should have to pay the landlord’s costs in a claim.

Nick Hopkins, law commissioner, said: “Enfranchisement offers a route out of leasehold but the law is failing home owners. It is complex and expensive, and leads to unnecessary conflict, costs and delay.

“We’ve heard of untold stress caused to home owners who have had to put their lives on hold because of issues with their leases.

“Clearly, that’s not right, and our solutions for leasehold houses will provide a better deal for leaseholders and make sure that the law works in the best interests of house owners.”

Meanwhile, campaigners from the National Leasehold Campaign held a demo outside the Houses of Parliament on Wednesday calling for leasehold reform to include measures to help existing home owners.

It was supported by MPs Jim Fitzpatrick and Justin Madders, who co-chair the All Party Parliamentary Group on Leasehold Reform.

Great turnout at National Leasehold Campaign rally this afternoon! pic.twitter.com/A3mSa0Tz0x

— Jim Fitzpatrick (@FitzMP) July 18, 2018