Law Commission Reforms

Following detailed research and consultation The Law Commission published its reports on leasehold reform in July 2020. Full details of which can be found here: https://www.lawcom.gov.uk/project/leasehold-enfranchisement/

The relevant section of the report is recommendation 46 on page 800.

Following negotiation between TANT and the National Trust it was agreed that subject to the reforms being passed into law long leaseholders would be:

  1. Able to extend their lease to 990 years at a peppercorn rent for a premium calculated in accordance with the reforms.
  2. Entitled to the same if they obtain a lesser extension prior to the reforms being passed.
  3. Required to give the National Trust first option to purchase the lease at market value should they wish to sell.

The form of extended leases has not been agreed with the National Trust.

The Government plans to implement the law relating to new property ground rents in this session of Parliament and the broader question of 990- year lease extensions and associated premium calculations will be brought forward in the next session. A number of MPs approached by long leaseholders have confirmed their support of this part of the legislation in writing.

Further detail can be seen here: https://commonslibrary.parliament.uk/leasehold-reform-in-england-and-wales/.