Mark Chick ponders the leasehold v commonhold conundrum, arguing for reform, not replacement
- Government plans to ban new leasehold flats may not be taking into account challenges that exist with regard to the commonhold system.
- This article questions the need for a ban, arguing that reform to leasehold could benefit leaseholders and freeholders.
The government is planning to replace leasehold with commonhold, and to take steps to make commonhold the default tenure for new flats within the lifetime of this Parliament. As the first stage in this process, it published its Commonhold White Paper in March. In the white paper, the government said it would consult on the ‘best approach to banning new leasehold flats’.
While I support the proposals to reform the current system, I am also mindful of the challenges that must be overcome to make commonhold succeed for all types of development, and of the fact that leasehold is not the complete failure that some have stated.
There are aspects of leasehold that need to change: there have been
