Mayor of London calls for wholesale reform of leasehold system

The Mayor of London, Sadiq Khan, has launched a new guide for leaseholders while at the same time stepping up his calls on ministers to overhaul the system of leasehold for home buyers in the capital.

An estimated one-third of London’s homes – and over 90% of new-build housing – are owned on a leasehold basis.

The Mayor has called for wholesale reform of leasehold, including a long-term shift toward alternative tenures such as commonhold.

In the new guide, information ranges from the difference between leasehold, freehold and renting, to advice on buying the freehold for a block of flats, and pursuing tribunal proceedings against a freeholder if an enfranchisement agreement can’t be reached.

There is also a glossary of terms to help leaseholders understand the complex language often used in leasehold agreements.

According to the NAEA, 94% of leaseholders regretted buying leasehold properties, and 65% would welcome additional information on their rights and responsibilities.

James Murray, deputy mayor for housing and residential development, said: “For too many Londoners, being a leaseholder is a complex and confusing legal minefield.

“The Government has so shown no real ambition to overhaul leasehold, nor to help existing leaseholders with the challenges they face.

“That’s why the Mayor is urging the Government to prioritise legislation to help both new and existing leaseholders, and in the meanwhile we are doing all we can to help leaseholders in the capital with advice and guidance on their rights.”

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4 Comments

  1. Will2

    Perhaps the mayor should concentrate on London problems and building homes rather than national concerns

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  2. Northampton Landlord

    The Law Commission is working on this area of law at the moment.

    They are outside government control and totally independent.

    DHC&LG have already instructed the review.

    I attended one of the Law Commission seminars at Manchester Metropolitan University last Tuesday 19 Feb 2019.

    Mr Khan appears to be “Asleep at the wheel”.

    Demanding something that was commenced in Jan 2019.

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    1. Will2

      Clearly taking a spin the way he spins everthing!

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  3. jeremy1960

    I think I saw a report last week that khan had missed his own target to build houses in London by about 80% so far! Man needs to concentrate on the important things in his job description, crime, housing, unemployment etc. rather than fiddling around with what can go on underground posters, who can wee in which loo and how many times he can appear on TV radio and in selfies!!

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