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Leasehold flats being banned by the government

DoctorCharlton
Posts: 2,463
Hi all,
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
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Comments
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If commonhold becomes the new standard, leasehold flats could lose value, especially if they have short leases or high ground rents. However, if the government provides a smooth transition to convert leasehold flats to commonhold, the impact may be less damaging to existing leaseholders. In the short term, uncertainty might make leasehold flats harder to sell, but in the long term, a shift to commonhold could be beneficial for homeowners.
The current government - and, in fact, any government, from Labour to Tory or even LibDem - would not introduce a policy to "ban" leasehold flats if it is likely to end up with homeowners seeing the value of their properties being negatively affected. So they will look at various ways of mitigating the effect, including making it easy, quick and inexpensive to convert from leasehold to commonhold.4 -
Is this going to be a political thread (as in ‘government’ was mentioned)?
Oh goodie.
Self described anarchist Pierre-Joseph Proudhon said ‘property is theft’.
Would an 18 year old person just kicked out of the local authority care system be handed a freehold property by our wider society?
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DoctorCharlton said:Hi all,
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
As it stands the problem comes when a lease starts to run down and get below 80 years, to extend the lease then really can start to add up from that point and also to a level they become unmortgageble.3 -
seth plum said:Is this going to be a political thread (as in ‘government’ was mentioned)?
Oh goodie.
Self described anarchist Pierre-Joseph Proudhon said ‘property is theft’.
Would an 18 year old person just kicked out of the local authority care system be handed a freehold property by our wider society?
But what do the anarchists have to say about VAR?
Tell me that..1 -
seth plum said:Is this going to be a political thread (as in ‘government’ was mentioned)?
Oh goodie.
Self described anarchist Pierre-Joseph Proudhon said ‘property is theft’.
Would an 18 year old person just kicked out of the local authority care system be handed a freehold property by our wider society?14 -
Rob7Lee said:DoctorCharlton said:Hi all,
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
As it stands the problem comes when a lease starts to run down and get below 80 years, to extend the lease then really can start to add up from that point and also to a level they become unmortgageble.
My current lease has 990 years on it so think I'm safe in that aspect.
Just to be clear, I'm currently in a leasehold so how easy do you think it would be to move to commonhold and will this have financial implications to myself? Does it need other residents to pay equal if so?
I'm just putting myself in the landowners shoes, are they just going to be forced to hand over to the residents for a nominal fee?0 -
and FWIW I really don't want to make this a political discussion, I am just seeking advice and guidance. Thank you11
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Rob7Lee said:DoctorCharlton said:Hi all,
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
As it stands the problem comes when a lease starts to run down and get below 80 years, to extend the lease then really can start to add up from that point and also to a level they become unmortgageble.5 -
DoctorCharlton said:Rob7Lee said:DoctorCharlton said:Hi all,
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
As it stands the problem comes when a lease starts to run down and get below 80 years, to extend the lease then really can start to add up from that point and also to a level they become unmortgageble.
My current lease has 990 years on it so think I'm safe in that aspect.
Just to be clear, I'm currently in a leasehold so how easy do you think it would be to move to commonhold and will this have financial implications to myself? Does it need other residents to pay equal if so?
I'm just putting myself in the landowners shoes, are they just going to be forced to hand over to the residents for a nominal fee?
However in principle you've always been able to (and get first refusal) to buy the freehold if the freeholder wanted to sell or in certain circumstances
See link for current details: https://www.lease-advice.org/faq/how-can-i-buy-the-freehold-of-my-building/
In a large block that can become very difficult to get everyone on board, hence why I think this law will apply to future new builds that simply will no longer be leasehold as we know it.For now just sit tight and wait and see, you have 890 years before you need to worry too much!1 -
I haven't dug into the latest announcements but last time I checked this package of reforms (that's been knocking about for a few years now) also included some stuff about making it easier/cheaper for existing leaseholders to extend their lease. Hopefully some sensible measures like that come through and address any potential imbalance between the commonholds and leaseholds1
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I cannot see this working in high rise blocks with many being rented out and who owns the land between the blocks and who maintains that.0
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Rob7Lee said:DoctorCharlton said:Rob7Lee said:DoctorCharlton said:Hi all,
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
As it stands the problem comes when a lease starts to run down and get below 80 years, to extend the lease then really can start to add up from that point and also to a level they become unmortgageble.
My current lease has 990 years on it so think I'm safe in that aspect.
Just to be clear, I'm currently in a leasehold so how easy do you think it would be to move to commonhold and will this have financial implications to myself? Does it need other residents to pay equal if so?
I'm just putting myself in the landowners shoes, are they just going to be forced to hand over to the residents for a nominal fee?
However in principle you've always been able to (and get first refusal) to buy the freehold if the freeholder wanted to sell or in certain circumstances
See link for current details: https://www.lease-advice.org/faq/how-can-i-buy-the-freehold-of-my-building/
In a large block that can become very difficult to get everyone on board, hence why I think this law will apply to future new builds that simply will no longer be leasehold as we know it.For now just sit tight and wait and see, you have 890 years before you need to worry too much!0 -
People having a secure place to live is a challenge and a societal issue.1
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seth plum said:People having a secure place to live is a challenge and a societal issue.
What with the population increasing faster than homes are being built it will continue to be so.1 -
It’s also it’s also completely irrelevant to the OP, but let’s just ignore the request to not make it political.
Trolls gotta troll.7 -
Rizzo said:Rob7Lee said:DoctorCharlton said:Hi all,
Don't post on here as much anymore but wanted to seek some help as the latest announcement from the government has concerned me.
I live in a new build leasehold apartment in Essex and am not sure what the future holds for me in terms of my property value and this move over to commonhold. How easy do you think it will be? and I'm guessing my property value will nosedive if I'm on this old leasehold system?
Thanks in advance everyone.
As it stands the problem comes when a lease starts to run down and get below 80 years, to extend the lease then really can start to add up from that point and also to a level they become unmortgageble.1 -
do all flats in a block have to agree to extend their leases or can you do it individually?0
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DOUCHER said:do all flats in a block have to agree to extend their leases or can you do it individually?1
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Athletico Charlton said:DOUCHER said:do all flats in a block have to agree to extend their leases or can you do it individually?0
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blackpool72 said:seth plum said:People having a secure place to live is a challenge and a societal issue.
What with the population increasing faster than homes are being built it will continue to be so.2 - Sponsored links:
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Because societal resources are not being used to help create the homes needed for the population.0
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This 'secure place to live' that the thread is presently focused on, is something everyone would benefit from. Leasehold is not secure for many. Grenfell and the cladding issues have highlighted this more recently. Stories of horrible freeholder behaviour and complex legal framework have also accelerated pressure for reform. But it will be resisted by the self-interest of landowners, and their supporters.
An expanding population isn't a threat to most of us. It's relatively trivial for a discussion about leasehold and commonhold. Some economists will argue that the rate of population growth must keep up with economic production and if we fall below one for one replacement of the workforce (as continues to be the state of most modern capitalist economies), we will continue to have issues with raising tax, labour shortages, and associated social care issues as the population ages.
But it seems people feel threatened by what they perceive as population expansion, especially those who haven't had the security of a place to live themselves, and then there are those who can't or won't see the bigger picture as it's easier to blame 'outsiders', or whoever they deem to be undeserving.
Back to commonhold, and it is perhaps a scary prospect for some. There's complexity and a transition period as with most societal change. It won't suit everyone to adopt or convert to the new arrangements. It's hard enough now getting people to attend an AGM or even to understand what a leasehold means. There's a higher level of responsibility in commonhold and loss of leaseholder protections. You are an equal, unit-holder, with responsibilities, but still most will be inclined to leave these to a few keen individuals to run the commonhold affairs for them, perhaps with a professional management company, and there will still be disputes, about payments and noise and everything else. Having a pop at outsiders will still be attractive to a few idiots while all this goes on.
https://www.lease-advice.org/advice-guide/commonhold/
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It is undeniable that the population expansion in the UK is a direct cause of the housing crisis. All well and good for people who already own homes, but for those who don't (which accounts for many young people), you can see why they turn to parties like Reform. Labour intend to built 1.5 million homes across 5 years which is a very ambitious target. Even if they meet it, it won't make much different to the price of housing.1
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cafcnick1992 said:It is undeniable that the population expansion in the UK is a direct cause of the housing crisis. All well and good for people who already own homes, but for those who don't (which accounts for many young people), you can see why they turn to parties like Reform. Labour intend to built 1.5 million homes across 5 years which is a very ambitious target. Even if they meet it, it won't make much different to the price of housing.2
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There are more, and more significant factors, that explains the current housing emergency than what people call population growth.0
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swords_alive said:cafcnick1992 said:It is undeniable that the population expansion in the UK is a direct cause of the housing crisis. All well and good for people who already own homes, but for those who don't (which accounts for many young people), you can see why they turn to parties like Reform. Labour intend to built 1.5 million homes across 5 years which is a very ambitious target. Even if they meet it, it won't make much different to the price of housing.
I work in the UK planning system and it is frustrating how bloated the requirements for planning applications has become. Environmental regulations are becoming overbearing. I worked in Canada for the last 4 years and the amount of detail you need to submit is half of what is required here. No wonder it takes so long to get these projects going.0 -
UK population in 1970. 55 million
UK population in 1980. 56 million
UK population in 1990. 57 million
UK population in 2000. 58 million
So roughly an increase in population of 1 million per decade.
UK population today is over 69 million and rising.
It is undeniable that the recent increase in population has put enormous pressure on housing.
Even with the best will and intentions house building simply cannot keep up with this.2 -
blackpool72 said:UK population in 1970. 55 million
UK population in 1980. 56 million
UK population in 1990. 57 million
UK population in 2000. 58 million
So roughly an increase in population of 1 million per decade.
UK population today is over 69 million and rising.
It is undeniable that the recent increase in population has put enormous pressure on housing.
Even with the best will and intentions house building simply cannot keep up with this.
but there are less conventional families than 1970 and expect the average occupancy is lower generally.2 -
I can think of at least four major and significant reasons as to why we have a housing emergency that would come in (in my opinion) way before population growth.
I won’t say what those reasons are in order to avoid the personal attacks from all my enemies on Charlton Life.3 -
Part of the population growth is net legal migration. It is many times that of illegal migration. Many people 'imported' to do jobs that would otherwise be unfilled. If only there were people who could do those jobs2