| Excellent work by the government yesterday 16:58 - Jan 28 with 3382 views | The_Flashing_Smile |
on the ground rent cap, plus stronger legal rights to dispute unreasonable service charges, easier “Right to Manage” and the eventual getting rid of leasehold altogether. Been the bane of our life that lot, so brilliant moves by Labour.
Funny how no-one mentioned it on here.
Plenty of good stuff is happening with this government as they try to fix years of neglect, but it doesn't seem to get reported so strongly. |  |
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| Excellent work by the government yesterday on 19:26 - Jan 30 with 435 views | FrimleyBlue |
| Excellent work by the government yesterday on 10:31 - Jan 30 by Keno |
mmmmm....
Beware the law of unintended consequences
Cap ground rent, good for renters
Landlords not so happy so start selling off rental properties
less rental property available so rents increase
sudden increases in property for sale see prices fall which means many owners could end up in negative equity
Lots of negative equity sees potential credit crisis as lenders under pressure
Time will tell whether its good or bad |
Ground rent caps are great for landlords Keno, just not those with block ownership. We could see a rise in blocks of flats going for sale, but that should potentially be a positive as that should enable the leaseholders to get together and run their blocks together, getting insured for building works etc but much smoother service charges that leaseholders understand exactly what they are paying and where it goes and actually see it being put to use. |  |
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| Excellent work by the government yesterday on 19:40 - Jan 30 with 410 views | redrickstuhaart |
| Excellent work by the government yesterday on 14:53 - Jan 30 by DJR |
And I suppose the difference is that Scotland has had this system of ownership in place presumably since time immemorial. In England and Wales, it will certainly be a steep learning curve.
And I came across this recent article, which indicates the possible issues.
https://www.estateagenttoday.c
The Society of Licensed Conveyancers (SLC) has expressed “serious concerns” about the Draft Commonhold and Leasehold Reform Bill’s ambition to make commonhold the default tenure for new flats and to accelerate the conversion of existing leasehold buildings.
It warns that there isn’t sufficient evidence that the system is ready to operate at scale.
Despite welcoming the wider leasehold reforms, including a cap on ground rents, the SCL cautions that commonhold remains largely untested in England and Wales.
Unlike leasehold, commonhold places the ongoing management, financial decision-making and governance of buildings directly in the hands of homeowners, many of whom will have little experience of the legal and administrative responsibilities involved.
The Society is particularly concerned that the Bill risks exposing consumers to new forms of dispute, delay and financial uncertainty. Commonhold arrangements rely heavily on collective decision-making, with greater scope for deadlock between owners, increased reliance on tribunals, and limited safety nets when relationships within a building break down.
There are also unresolved questions around mortgage lender confidence. While the Bill permits charges over commonhold units, it also allows for circumstances in which existing charges may be modified or extinguished through conversion or tribunal processes. Without clear and consistent lender acceptance, the SLC said there is a real risk that commonhold properties could become harder to sell or remortgage, undermining the very homeownership stability the reforms seek to promote.
From a conveyancing perspective, the Bill introduces a step-change in complexity. New title structures, Commonhold Community Statements replacing leases, automatic Land Registry changes and transitional arrangements affecting existing interests will all require careful navigation. During the transition period, this significantly increases the risk of error, delay and consumer confusion, the SLC said.
The SLC said it is also concerned about the conversion process from leasehold to commonhold.
A statement said: “While lowering the consent threshold may make conversion more achievable, it also raises the risk that some leaseholders and third parties could be affected by the extinguishment or alteration of rights, leading to disputes and compensation claims.
“The Society is therefore calling on the Government to ensure that reform is introduced at a pace that prioritises consumer protection and market stability. This includes meaningful engagement with conveyancers, clear and standardised documentation, robust transitional safeguards, and investment in education for both professionals and the public.
“The SLC stands ready to work constructively with policymakers to ensure that leasehold reform delivers fairer, more sustainable homeownership—without creating a new generation of property problems under a different legal framework.” [Post edited 30 Jan 14:53]
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I am really not sure how much weight you put on the opinions of licensed conveyancers. |  |
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| Excellent work by the government yesterday on 20:41 - Jan 30 with 353 views | DJR |
| Excellent work by the government yesterday on 19:40 - Jan 30 by redrickstuhaart |
I am really not sure how much weight you put on the opinions of licensed conveyancers. |
That's a very condescending attitude. You must be a solicitor, as am I.
I haven't looked into whether other representative organisations have concerns, but I did come across this from Osborne Clarke which chimes with something I said earlier might be a problem in relation to commonhold.
"Recent experience of leaseholders in enfranchised buildings affected by building safety issues, shines a light on some of the difficulties of funding and managing leaseholder-owned buildings, even where managing agents are appointed." [Post edited 30 Jan 20:45]
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| Excellent work by the government yesterday on 07:35 - Jan 31 with 294 views | noggin |
| Excellent work by the government yesterday on 19:20 - Jan 30 by FrimleyBlue |
It hits landlords with mortgages.
Those without mortgages aren't effected that much and it's a positive step
The only gripe is the 12 month protection for new tenants. I get the principle and rightfully it protects the tenants, but things happen in life. You may have no choice but to sell a property that houses a new tenant, but you'll legally not be able to for 12 months.
The other changes are in the main rather positive on both sides. But that one i do disagree with.
Ground rent caps were needed years ago, the next thing to get rid of which they are trying to at present is the marriage term on leaseholds. |
"The only gripe is the 12 month protection for new tenants. I get the principle and rightfully it protects the tenants, but things happen in life."
Surely that's the least that should be expected if you're buying to let? Tenants are often quite vulnerable and should at least have some security when they move into a home. Let's be honest though, landlords are not some kind of Robin Hoods, doing it to help out the local community. |  |
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| Excellent work by the government yesterday on 09:42 - Jan 31 with 233 views | DJR |
| Excellent work by the government yesterday on 19:20 - Jan 30 by FrimleyBlue |
It hits landlords with mortgages.
Those without mortgages aren't effected that much and it's a positive step
The only gripe is the 12 month protection for new tenants. I get the principle and rightfully it protects the tenants, but things happen in life. You may have no choice but to sell a property that houses a new tenant, but you'll legally not be able to for 12 months.
The other changes are in the main rather positive on both sides. But that one i do disagree with.
Ground rent caps were needed years ago, the next thing to get rid of which they are trying to at present is the marriage term on leaseholds. |
Many people get into trouble in this country but they don't have the luxury of an asset which has likely risen in value since they purchased it, and the mortgage on which has been paid by the tenants, with no doubt a little bit of additional income left over.
Indeed, if there is equity in the property they might well be able to borrow against that in the interim..
But at the end of the day, if they don't like the heat, stay or get out of the kitchen. [Post edited 31 Jan 9:44]
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| Excellent work by the government yesterday on 09:43 - Jan 31 with 230 views | redrickstuhaart |
| Excellent work by the government yesterday on 09:42 - Jan 31 by DJR |
Many people get into trouble in this country but they don't have the luxury of an asset which has likely risen in value since they purchased it, and the mortgage on which has been paid by the tenants, with no doubt a little bit of additional income left over.
Indeed, if there is equity in the property they might well be able to borrow against that in the interim..
But at the end of the day, if they don't like the heat, stay or get out of the kitchen. [Post edited 31 Jan 9:44]
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But but but....
Its not fair.
They should be able to have a guaranteed appreciating asset that pays for itself and generates a profit, with no risk. | |
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| Excellent work by the government yesterday on 10:16 - Jan 31 with 203 views | Blueschev |
| Excellent work by the government yesterday on 07:35 - Jan 31 by noggin |
"The only gripe is the 12 month protection for new tenants. I get the principle and rightfully it protects the tenants, but things happen in life."
Surely that's the least that should be expected if you're buying to let? Tenants are often quite vulnerable and should at least have some security when they move into a home. Let's be honest though, landlords are not some kind of Robin Hoods, doing it to help out the local community. |
I think you’ll find they are. You clearly have no idea how hard it is to own multiple properties. It’s barely even worth having a multi million pound portfolio these days. If Liebour aren’t careful all of these hero’s will have no choice but to knock all their houses down. Then where will we live? |  | | |
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