Property News · July 20, 2018

The leasehold system is a money-making racket. Reform is long overdue | Sebastian O’Kelly


The grisly leasehold sector has enriched itself at the expense of ordinary families’ wealth and securityThis week, the Law Commission fired the opening shot at the murkiest and most lucrative corner of the residential property market: the leasehold system.Leasehold simply means long tenancy and it is unique to England and Wales. When you buy a leasehold property, you own it for a fixed period of time: ownership of the property returns to the landlord when a lease comes to an end. Every other jurisdiction in the world, including those based on English law, have either never introduced it or, as in Australia and New Zealand, have virtually removed it. But it has endured and thrived here: indeed, in 2016, about 27% of residential property transactions in England and Wales were leasehold. It is growing as a form of ownership as our population increases and we have to build flats instead of houses and at higher densities, particularly in the south-east. Continue reading…

Source : theguardian.com
Read more…The leasehold system is a money-making racket. Reform is long overdue | Sebastian O’Kelly

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