RLA : RPI : Commonhold law moves closer

News from the Residential Property Investor, the bi-monthly magazine for RLA members

other artilces from the February / March 2001 issue

Commonhold law moves closer - February / March 2001

Newly introduced legislation will give flat owners the right to own a share of the freehold of the building in which they live.

The Commonhold and Leasehold Reform Bill, published in December, seeks to create the new form of tenure as an alternative to leasehold and sets out provisions for maintenance of common parts.

'The organisation owning and managing the common parts, which we are calling the commonhold association, will be a company whose members will be all the unit holders, and only the unit holders, all of whom will have voting rights', explained David Block, the minister within the Lord Chancellor's department responsible for introduction of the Bill.

Also included are new rights making it easier for leaseholders to take over management of their building and to extend or renew their leases. There will also be wider powers for the Leasehold Valuation Tribunal to resolve disputes between leaseholders and their landlords.

Ground rents will not be payable unless demanded by the landlord in the prescribed form with restrictions on use of penalties and proceedings for non-payment.

'There are two fundamental problems with residential leasehold', claimed Housing Minister Nick Raynsford. 'Leases are a wasting asset. Landlords can abuse or neglect their management responsibilities. The remedies the law currently provides are incomplete and ineffective. Our two million leaseholders deserve better'.

other artilces from the February / March 2001 issue