The Law Commission has published three reports in relation to residential leasehold.

Enfranchisement

The Law Commission proposes that 990-year extensions should be introduced. The current laws allow for 50-year extensions under the Leasehold Reform Act 1967 for houses, and 90-year extensions for flats under the Leasehold Reform, Housing and Urban Development Act 1993.

They also propose that ground rents should be able to be bought out by leaseholders and that collective enfranchisement should be through a nominee company, who can acquire more than one block.

Right to Manage (RTM)

To enable one RTM company to manage more than one building and facilitate estate-wide management, the Law Commission recommends that legislation is passed to overturn the effect of Triplerose Ltd v 90 Broomfield Rd RTM Co Ltd [2015] EWCA Civ 282. Further, it recommends legislative change to allow shared owners to take part in the RTM process.

Commonhold

Commonhold is also under the spotlight again and the Law Commission is promoting the use of commonhold as preferable to leasehold ownership. Technical recommendations have been made to make commonhold a more attractive option for the sector.

The full reports can be found here:

https://www.lawcom.gov.uk/project/leasehold-enfranchisement/

https://www.lawcom.gov.uk/project/right-to-manage/

https://www.lawcom.gov.uk/project/commonhold/

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