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ARTICLE · 30 AUGUST 2021

Update – Case Law And Legislative Developments – Enfranchisement

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In this blog we pull together cases and legislative developments over the last 12 months relating to enfranchisement:

United KingdomReal Estate and Construction
Mark Vinall
Mark Vinall

In this blog we pull together cases and legislative developments over the last 12 months relating to enfranchisement:

Leasehold reform (ground rent) bill - the Queen's speech heralded the introduction of legislation to effectively set ground rent at nil in new residential leases subject to some exceptions.

These restrictions will affect Ground rent investors when granting voluntary lease extensions to flat owners and developers may lose out too as the price they had to pay to secure the site will have assumed some realisation of value from a ground rent income stream.  Where the developer holds a lease of the site the freeholder may also be impacted.

The commencement date remains to be confirmed.  When these proposals were first announced in 2018 the Government intimated the effect would be backdated to 2017 so that remains a risk despite what has been said in the meantime.

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