Make Residential Leasehold illegal for new build, Regulate management companies, and make Leaseholders’ Valuation Tribunals properly accessible.

Residential Leasehold is a throwback to the feudal system, allowing landowners to profit shamelessly, and should be abolished for new-build.  All new build should be freehold or (for flats) commonhold.  Commonhold has been an option for some time now, but rarely used.  Why not?  Because leasehold is so much more profitable.  The losers are the purchasers. 

In addition, there is no regulation for the management companies, which as a consequence often give poor service for high prices.  A simple google-search will reveal many abuses.  Again, the losers are the purchasers.  Removing poor managers is possible, but tortuous, and especially so if the leaseholders are elderly, which is the case in retirement developments.

In theory, Leaseholders' Valuation Tribunals are available to sort out disputes, but in reality they are intimidating for the 'ordinary person'.  Landlords and management companies often turn up with barristers.  It's time the system was reformed, and made truly accessible for all to use, without legal representation..

Why does this idea matter?

Numerous attempts have been made to reform leasehold, and management services, the most recent being only a few weeks ago.  They have always failed.  A cynic would say this is because of the powerful lobbying effect of the big landowners.  Even though there are laws to protect the leaseholder, the huge imbalance of power means they are in practice ineffectual.  It is time matters were evened up, and real freedom given to the millions of residential leaseholders in the UK.  (I believe Scotland has abolished residential leasehold, but there are still many abuses there too regarding the management companies or 'factors'.) 

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1 Response

  1. Chris says:

    This is a great idea, the inbalance in power is evident everywhere, regulation is needed most. Even where residents form management companies directors often get themselves in conflict of interest situations and address only issues that benefit them. How do we get this issue moving?

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