Title: Leasehold Home Ownership : Buying Your Freehold or Extending Your Lease
Description: "Leasehold enfranchisement is the process for people who own property on a long lease ('leaseholders') to extend the lease, or buy the freehold. In order to exercise enfranchisement rights, leaseholders must pay a sum of money ('a premium') to their landlord. This paper summarises our 'Report on options to reduce the price payable', published on 9 January 2020 ('the Report'), and available at www.lawcom. gov.uk/project/leasehold-enfranchisement/. The Report concerns how premiums are calculated. The Report follows our consultation on wide-ranging reforms to the enfranchisement regime. Our Consultation Paper is available at the same address. Our Terms of Reference, agreed with Government, asked us: 'to examine the options to reduce the premium (price) payable by existing and future leaseholders to enfranchise whilst ensuring sufficient compensation is paid to landlords to reflect their legitimate property interests' (emphasis added). LEASE Leaseholders Landlords In accordance with our Terms of Reference, therefore, in the Report: 1. we set out options for reducing premiums and for simplifying the way in which premiums are calculated; but 2. we do not make a recommendation as to how premiums should be calculated. That is a not just a legal question: it involves considerations of law, valuation, social policy, and political judgement, and is therefore for Government and ultimately Parliament to decide. The Report enables Government and Parliament to decide how premiums should be calculated, informed by the consultation responses that we received and by our own expertise and analysis."
Subjects: Business communication, Leases, Real property