Properties can be owned as a freehold or leasehold. Freeholders are not usually affected by time because they are the owners or landlords. They also have the highest power of control. While the leaseholder is affected by time, he shares control with the freeholder.
The UK and Welsh government announced they are likely to address the various concerns of the ground rent scandal. But these measures will only affect new home buyers and not existing ones. That is, their obligation to pay their ground rents still stands.
Some leasehold properties have binding or enfranchisement right to buy out (redeem) their freehold property or seek for extension. This article is intended to briefly look at ways government can assist existing homeowners on their enfranchisement rights.
1. First, the proposed enfranchisement will turn off all distinction between houses and flat. The rights of leaseholders will be strengthened, additionally. Somewhat standardized, practicable, useful and coherent.
2. Two, leaseholders will be, under this solution to be proposed, acquire ownership but this time without the technical bottlenecks that have slowed progress thus far.
3. A longer lease extension is the third enjoyment for leaseholders. For example, 125 - 250 years without payments for ground rent. There will be no limits to the number of lease extension at their disposal. A lot of leaseholders will go after freeholder status; however, in certain cases, some will settle for lease extension. It will be a long lease without expensive ground rent payments.
4. This proposal will call for the respect and maintenance of consumer choices. The terms of leasehold as contained in current laws and statues needs to be addressed. This will ensure leaseholders are favoured than in times past.
5. Leaseholders of houses will be part of the enfranchisement right. This will enable them to bid for estate buildings. This chance will enable them purchase the freehold of the estate comprising multiple buildings. Whether blocks or flat or combination of both.
6. Leaseholders who didn't participate in collective enfranchisement because of shortage of funds will do so.
The ground rent scandal is reshaping the estate industry in the UK. And everyone is loving it. Soon, stakeholders will look back and smile.