How does the recent leasehold reform announcement affect my right to manage intentions?

In short, the recent leasehold reform announcement shouldn’t affect your right to manage intentions very much at all.

The Government announced big changes to the procedure for leasehold reform yesterday. Please see our blog for full details: https://www.meaby.co.uk/leasehold-reform-big-changes-announced/

What is commonhold?

One aspect of the Government’s leasehold reform announcement was to introduce a scheme of commonhold. Unlike freehold and leasehold ownership, commonhold is not a type of estate in land. It is largely based on the freehold model but means that you might have freehold ownership of a flat within a larger development, with membership of a controlling management company that owns and manages the common parts of the development.

Little information is provided in the Government’s announcement save for this issue will be considered and consulted upon.

For the moment, it appears that commonhold (in management terms) bears a strong similarity with a freehold company controlled by tenants after a successful enfranchisement save that, we anticipate but do not guarantee, that each flat will be a freehold interest rather than a leasehold.

If you’ve chosen to or are considering to exercise right to manage, we imagine that your motivation for doing so is because you do not want to pay a premium for acquiring the freehold as is the case in enfranchisement. Time might also might be of the essence in respect of your attempt to avoid further charges or major works from your landlord. For this reason, our advice (subject to a further analysis of your circumstances) would be to continue as you were.

If you would like to discuss right to manage, please contact the Leasehold Property Team: brose@meaby.co.uk or ncleightonhills@meaby.co.uk or call 0207 703 5034.