Leasehold reform will lead to fewer professionally managed apartment blocks

first_imgHome » News » Leasehold reform will lead to fewer professionally managed apartment blocks previous nextRegulation & LawLeasehold reform will lead to fewer professionally managed apartment blocksWarning comes from leading leasehold services provider which warns reducing income for freeholders will hit the block management sector hard.Nigel Lewis10th January 202001,618 Views A leading legal expert has warned that the Law Commission’s proposed leasehold reforms of the leasehold system in England and Wales published yesterday could hit the block management property sector hard.Mary-Anne Bowring, group managing director at leasehold services firm Ringley claims that, while these reforms would save leaseholders money, the “erosion of the benefits of being a freeholder would likely see an increase in non-professionally managed blocks, absentee freeholders and other court processes,” she says.“All freehold reversionary properties are valued by Chartered Surveyors on the basis of the lease length and terms and as the RICS definition of ‘market value’ includes hope value in effect the valuation today includes the probability of some lease extension income.“If this is to be curtailed in law, then the valuation effect is a reduction in the value of the landlord’s asset.”The leasehold reform proposals from the Law Commission of England and Wales, which have already been welcomed by Housing Secretary Robert Jenrick (left), would see the costs of buying or extending a leasehold dramatically reduced, commonly referred to as enfranchisement.The Law Commission claims its proposals will make the process of enfranchisement easier and cheaper for ‘millions’ of leaseholders. These measures could also make selling leasehold properties easier; potential vendors must often wait months and pay huge costs to extend leaseholds, tying up the property market.“We consulted widely in putting together the options for reform,” the Law Commission says in a statement.“Leaseholders have advocated sweeping reform to lower the cost of enfranchisement of their homes.“We have heard contrary arguments from landlords and investors – including charities and pension providers – the value of whose interests would fall if premiums are reduced.”Read more about block management.Read the Law Commission’s summary of its proposals.    Ringley block management Robert Jenrick Leasehold Reform January 10, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img

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