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Changes on the horizon for the UK Leasehold System?
MPs say the home leasehold system requires changes, according to a recent BBC News article.
Nick Conner, partner in our property team at Tozers, makes his comments in response to this report:
“It is rather worrying that the report cites instances of buyers not knowing the difference between leasehold and freehold at the point of purchase – a good lawyer will clearly explain the differences of these forms of ownership to a client at the earliest opportunity. Leases are necessary to ensure that appropriate rights and obligations exist for properties which rely on support and protection from other parts of a building, however there are areas where reform would be welcome, for example a minimum lease term for new leases and either the abolishment of ground rents or some form of capping to prevent escalating reviews. While a key features document will help bring detail to the attention of the buyer before solicitors are involved, I would be sceptical as to whether this changes how new leases are drafted going forwards, which is where reform is arguably most needed.”