Leasehold Reform Research Articles

Are WE There Yet: Leasehold Reform

Are WE There Yet: Leasehold Reform

Grounds for concern: Leasehold reform and the future of home ownership

Grounds for concern: Leasehold reform and the future of home ownership

DAEJAN INVESTMENTS LTD V BENSON [2013] UKSC 14, [2013] 1 WLR 854, [2013] 2 ALL ER 375

In this important case on the Landlord and Tenant Act 1985 (as amended by the Commonhold and Leasehold Reform Act 2002) the Supreme Court, by a bare majority, allowed the appeal against the decision of a Leasehold Valuation Tribunal (LVT) which had been affirmed by, first, the Upper Tribunal (Lands Chamber), and, secondly, by the Court of Appeal. Almost all long leases of flats contain an obligation on the landlord (or a service company) to provide services, such as repairing the exterior and common parts of the block, and a concomitant obligation on the tenants to pay service charges. The right of the landlord to recover such service charges depends on the terms of the particular lease, but the 1985 Act and the Service Charges (Consultation Requirements)(England) Regulations 2003 impose certain statutory requirements and restrictions on a landlord, which impinge on its ability to recover service charges. These requirements are designed to ensure that tenants of flats are not required (i) to pay for unnecessary services or services which are provided to a defective standard, and (ii) to pay more than they should for services which are necessary and have been provided to an acceptable standard.

Recent government housing policy and the private rented residential sector: a review

AbstractThis paper concentrates primarily on UK central government policy, which relates mainly to England and Wales. Brief summaries of activities in the devolved nations are also included. The government undertook a review of housing policy during 2000, as well as implementing other important policy initiatives, such as the Commonhold and Leasehold Reform Bill and the pilot Tenancy Deposit Schemes. The review was regarded as a profound disappointment by the private rented residential sector, and leaves the impression of a government that does not understand the sector, and does not have the time or the resources to acquire that understanding or think deeply about it. Consequently, it falls back on gut instincts, political preconceptions and token gestures. There are many important questions for the sector with which the government seems not to have engaged. Copyright © 2001 Henry Stewart Publications

Leasehold reform

Leasehold reform

The Leasehold Reform, Housing and Urban Development Act 1993: The Public Sector Housing Provisions

Part I of the Leasehold Reform, Housing and Urban Development Act 1993 (the '1993 Act'), which understandably has attracted most attention and controversy, will have relatively little impact on public sector housing. It is possible that former secure tenants who have exercised the right to buy their flats may consider collectively purchasing the freehold of the block, where they are eligible to do so.1 Similarly, former secure tenants of non-charitable housing associations who have exercised the right to buy their flats might also consider enfranchisement where they are qualified to do so.2 (Such flat owners might, for example, consider collective enfranchisement where they are unhappy with the level of service charge payments, or with the general quality of management of their block.) But it is in Part II of the 1993 Act that the main provisions affecting public sector housing is to be found.

The Onward March of Leasehold Enfranchisement

The Leasehold Reform, Housing and Urban Development Act 1993, which was introduced into the House of Commons on 22 October 1992 as the Housing and Urban Development Bill, finally reached the statute book on 20 July 1993.1 Part I of the Act, which is the subject of this note, came into force on 1 November 1993.2 Although popularly characterised as a radical measure, it is actually the latest stage in a process of reform which began in 1967 when the controversial Leasehold Reform Act3 first gave many occupiers of houses who hold under a long lease granted for a 'low (ground) rent,' a right to acquire compulsorily the freehold reversion to their property. This process is referred to as leasehold enfranchisement. As an alternative to enfranchisement, the 1967 Act also made provision for a qualifying tenant to extend his or her lease by claiming a new 50 year term at a ground rent for the site without the buildings. Part I of the 1993 Act extends the scope of the 1967 Act to the more expensive properties which until now had been excluded from its ambit. It also extends the principle of leasehold enfranchisement to flats which, for unconvincing reasons, had not been dealt with in 1967. The extension is by way of a new right of collective enfranchisement exercisable by tenants of flats over the freehold of the block of flats in which they live. The Act also confers on some tenants, who for some reason cannot or do not want to enfranchise collectively, the individual right to acquire a new long lease of the flat in substitution for the existing lease. Just as the 1967 Act proved to be controversial, not least in so far as it dealt with the price to be paid on enfranchisement, the most recent measure was also not without its vociferous critics. Foremost amongst the Act's opponents was the Duke of Westminster who, in a much publicised gesture, resigned from the Conservative Party. The criticisms of the Duke and other landlord opponents of the measure were voiced in both Houses of Parliament by Conservative Members who between them forced the Government to concede over three hundred amendments to the Bill

Leasehold Enfranchisement – The Valuation of Blocks of Flats

Considers the valuation of blocks of flats as a result of the Leasehold Reform, Housing and Urban Development Act, 1993. Qualifying residents of blocks of flats now have the collective right to acquire the freehold and intermediary interests provided procedure is followed and price is agreed. Gives a critical analysis of the rules for valuation set out in Section 32 and Schedule 6 of the Act and by use of worked examples, gives guidance on the three constituent elements of the required valuation. The valuation of the freeholders′ existing interest, the split of marriage value and the compensatory issues are all considered. As well as giving the general background to leasehold reform and enfranchisement since the Leasehold Reform Act, 1967, also considers some of the management and practical issues affecting a compulsory freehold purchase of this nature. The right of appeal to the Leasehold Valuation Tribunal and ultimately the Lands Tribunal are also considered.

Leasehold enfranchisement: part 1 of the Housing and Urban Development Bill 1993

Discusses the broad aims of the Leasehold Reform, Housing and Urban Development Bill 1993: collective enfranchisement, relevant premises, qualifying tenants, long lease, and leases at a low rent. Examines enfranchisement procedures and the valuation aspects relevant to the Bill. Concludes that the Bill has caused considerable concern because its complexity appears to offer little benefit to anyone.

Problems with mixed user lettings

A recent case in the House of Lords under the Leasehold Reform Act 1967 has drawn attention to one particular problem that may be faced by landlords who have let under a single lease premises which are partly residential and partly for business use. The purpose of this article is to consider briefly that particular problem together with other difficulties that arise under that type of letting.

The Leasehold Reform Act 1967

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Leasehold reform act 1967

Leasehold reform act 1967