Leasehold: Reform
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps she is taking to address the loophole in the Leasehold Reform, Housing and Urban Development Act 1993 whereby freeholders can retain undemised flats to prevent buildings from qualifying for collective enfranchisement.
Answered by Matthew Pennycook
The government wants to support leaseholders to take control of the management of their buildings through the right to manage or to enfranchise should they wish to do so. That is why we have already implemented the provisions in the Leasehold and Freehold reform act to remove the two-year qualifying period before people can enfranchise or extend their lease.
Where a freeholder owns a flat within a building this is no bar to leaseholders exercising their right to manage or to enfranchise. However, we recognise that if a freeholder owns a substantial portion of a building, claims are likely to be difficult. We would welcome any evidence of freeholders choosing to retain flats within buildings in order to complicate right to manage or enfranchisement proceedings.
The Government has committed to further reform the leasehold system by enacting remaining Law Commission recommendations relating to enfranchisement and the Right to Manage.
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