The Mayor of London has launched a new guide to help leaseholders and called on Ministers to speed up an overhaul of the system of leasehold for home buyers in the capital.
An estimated third of London’s homes, and over 90% of new builds are owned on a leasehold basis, with many leaseholders finding it a complex and confusing form of home ownership.
The Mayor has called for wholesale reform of leasehold, including a long term shift toward alternative tenures such as commonhold. In the meanwhile, he is working to ensure London’s leaseholders have access to high quality information on their rights and obligations.
The information in the guide ranges from the difference between leasehold, freehold, and renting, to advice on buying the freehold for a block of flats, and pursuing tribunal proceedings against a freeholder if an enfranchisement agreement can’t be reached.
There is also a glossary of useful terms to help leaseholders understand the complex language often used in leasehold agreements.
It comes after a recent study found that 94% of leaseholders regretted buying leasehold properties, and 65% said that they would welcome additional information on their rights and responsibilities.
The Mayor believes it is essential that home buyers are better informed about the obligations and risks involved in purchasing a leasehold property.
The Government funds the Leasehold Advisory Service (LEASE), an advice service for leaseholders in England and Wales but the Mayor believes ministers have so far failed to ensure it is fit for purpose for a growing sector.
The Mayor’s guide aims to be an alternative starting point for Londoners seeking information about leasehold, and directs users to seek further, more detailed advice from legal professionals and organisations specialising in housing and leasehold advice where necessary.
‘For too many Londoners being a leaseholder is a complex and confusing legal minefield,’ said James Murray, Deputy Mayor for Housing and Residential Development.
‘Beyond the financial commitments, the option of extending a lease or buying a freehold can present real legal and financial challenges for anyone who is not well versed in property law.,’ he pointed out.
‘The Mayor’s new online guide will give London’s leaseholders the basic knowledge they need to understand their rights, and will help them know what to do if they think those rights are being abused,’ he explained.
‘The Government has so shown no real ambition to overhaul leasehold, nor to help existing leaseholders with the challenges they face. That’s why the Mayor is urging Government to prioritise legislation to help both new and existing leaseholders, and in the meanwhile we are doing all we can to help leaseholders in the capital with advice and guidance on their rights,’ he added.