Amidst the latest news that Michael Gove wants to phase out leasehold properties, Kevin Ross, director at Brown Turner Ross offers his thoughts on the matter and what it might mean for the housing market.
Here’s what Kevin had to say:
“Leasehold property has an extremely toxic reputation albeit serves a purpose in many respects. To abolish it completely would need a complete overhaul in the property law which has always regulated property in the UK.
Whilst possible, it would need to be done very carefully and I believe on the face of it would be a very popular decision with the general population however leasehold property does have a place and is very usual for certain types of ownership.
The technicalities are very complex and so the alternatives would need to be very detailed to allow for areas of ownership suited to flats in a way that freeholds are currently not. There has been talk of reform for many years and we all told to expected leasehold changes around 6 years ago but then Brexit got in the way and thereafter Covid.
So certainly reform in some shape or form will be very welcomed to the property legal landscape as in many cases the law in extending your lease or indeed buying the freehold of your already owned leasehold property is archaic and in much need of modification.
How far they extend those changes into restrictions on ground rents and similar issues or whether the changes will be implemented retrospectively will be very interesting.”
Keep an eye out for the latest discussion and news around leasehold properties with Brown Turner Ross, your property and conveyancing solicitors in Liverpool and Southport.