Leasehold home ownership: buying your freehold or extending your lease Law Commission Consultation Paper

Fair Our role Cost-effective Modern Simple Keep the law of England and Wales under review and to recommend reform where it is needed Cost-effective Modern Simple

Background to our project Concerns about leasehold

Residential leasehold and commonhold: Terms of Reference Freeholders Leaseholders

Enfranchisement: Terms of Reference Improve access Simplify Options to reduce premiums

Scope of our work Who? How? What? How much?

Limits of our work Enfranchisement does not address all concerns with leasehold: Existing lease terms Mis-selling Further Law Commission work: Commonhold RTM Unfair terms on assignment Further MHCLG work

Our consultation Consultation paper and summary of the consultation paper www.lawcom.gov.uk/project/leasehold-enfranchisement Online response form www.consult.justice.gov.uk/law-commission/leasehold- homeownership Leaseholder survey www.consult.justice.gov.uk/law-commission/law-commission-leaseholder-survey Our consultation closes on 7 January 2019

Aims for today We want to hear your views on our provisional proposals for reform We will also try to answer as many of your questions as we can – but we cannot give legal advice We hope our presentation will help inform the debate about our proposals and encourage you to send us written responses

How would our proposals affect leaseholders? Four areas: What are the enfranchisement rights? Who can enfranchise? How do you enfranchise? How much will it cost?

What are the enfranchisement rights? Lease extensions Individual freehold acquisitions Collective freehold acquisitions (plus estate enfranchisement) Right to participate

One scheme for houses and flats Who can enfranchise? One scheme for houses and flats

Single, simplified procedure How do you enfranchise? Single, simplified procedure

Options for reducing the cost We are not making proposals for reducing the cost – we are setting out options

Options: simple formulae Two options Option 1A: ground rent multiplier Option 1B: percentage of value

Other options Option 2A: no marriage value Option 2B: marriage value Option 2C: current methodology + reforms

Further information Project webpage for residential leasehold and commonhold reform: https://www.lawcom.gov.uk/project/residential- leasehold-and-commonhold/ or www.lawcom.gov.uk “Find a project” Search “residential leasehold”