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Purchasing Freehold

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Whilst that is true so far as it goes, the law remains unchanged- and it will continue to be so until:

a. the Law Commission has reported;

b. HMG has considered the Report;

c. [possibly] a Green Paper has been issued;

d. a White Paper has been issued;

e. a Bill has been prepared;

f. the Bill passes through Parliament and receives Royal Assent; and

g. the new Act comes into force.

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The Law Commission are holding a consultation on leasehold reform and asking for comments of the fair price to pay for leasehold enfranchisement to collectively buy the freehold and statutory 90 years lease extension.

 

Should the freehold company be fully compensate for their loss of ground rent.? Figures of around 10 x annual ground rent have been proposed but this will not be acceptable to the freeholders who can hire agencies to lobby Minister and senior civil servants around Westminster.

 

Just remember the owner of the property is called freeholder because he owns the freehold title. The owner of a leasehold property is just owner of a long term rental agreement .

 

So have your say and give some reason to get the ground rent reduced to Nil and propose paying 10 - 15 times annual ground rent.

 

You can state the tax reason is because the leaseholder pays tax at 20% and 40% on job earnings but the freehold company owning the freehold title of your building pays tax at 19% after deducting loan interest from the rental income which is very little. This is not fair to leaseholders and many BTL leaseholders of flats are squeezed for subletting consent fees .

 

So visit the Law Commission website and contribute to the Public Consultation because more response will give better chance to lower the cost for leaseholders.

Edited by topflat29

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