The Impact of the Leasehold and Freehold Reform bill on Landlords and the Commercial Property Sector

Writing in IFA Magazine on behalf of the Association of Leasehold Enfranchisement Practitioners (ALEP), Katherine Simpson, examines the expected impact of the proposed Leasehold and Freehold Reform bill.

The Leasehold and Freehold Reform Bill is making its way through Parliament at speed, having been first introduced in November last year.

This article considers the impact of one significant change to the existing legislation, namely the proposal to raise the 25% non-residential limit in collective enfranchisement claims to 50%. This proposed has been welcomed by leaseholders and will almost certainly be enacted. But the amendment, whilst not as controversial as other proposed changes, will have a much greater impact on landlords and the commercial property sector than might at first glance have been appreciated.

A number of landlords, including the Grosvenor Estate, submitted evidence to the Select Committee challenging the proposed increase and highlighting the need to explore the unintended consequences of the proposal…

• Fragmented ownership of the high street
• Impact on investment
• Impact on building management and safety
• Conclusion

You can read the full article on IFA Magazine’s website